The end of the financial year can be a busy and sometimes overwhelming time for New Zealand businesses. With legislative changes coming into effect, new reporting obligations, and final pay runs to manage, it’s important to stay ahead. At Tempus, our goal is to make this process as smooth and stress-free as possible.
We’ve created this clear and practical guide to help you navigate the key payroll changes and prepare for the 2025 financial year with confidence.
Minimum Pay Increase
From 1 April 2025, the minimum hourly pay will increase by $0.35 to $23.50.
Training and starting-out rates will increase to $18.80 per hour.
Adjustment to ACC Levy
From 1 April, the levy on earnings for injury cover will rise to $1.67 for every $100 earned.
The upper limit on earnings that levy is paid on will increase to $152,790.
Self-employed people will pay levies on income of at least $49,365.
Updates to Employer Contribution Tax Rates
Employer contributions to retirement savings will be taxed using updated income bands from 1 April.
Tempus will apply these new thresholds automatically, but we encourage you to review earnings estimates for accuracy.
Cashing Up Annual Holidays
This time of year, some employees may wish to turn part of their leave entitlement into cash. Just remember:
Employees can ask to convert up to one week of their four-week entitlement each year.
Requests must be made in writing (please contact us if you require Annual Holidays to be cashed up)
As an employer, you have the right to say no – you are not required to approve every request.
Employment New Zealand has some useful information on this topic HERE.
Reports
At the conclusion of each pay run we provide the 'audit report' which summarises the pay run itself. Now is a practical time to go and ensure you have kept each copy of the audit report on file. If needed, you can run the audit report yourself by following the guide HERE.
Summary
The Tempus team is here to support you. If you have a question or need further assistance, please contact us and we will help!
If you’re not yet using Tempus and want to simplify your year-end process, talk to us today about getting started.