Year in Review and Price Adjustment

As 2019 (and the decade) draws to a close, we’d like to thank you for choosing SimplePay as your payroll software provider. We really value the loyalty, ideas, feedback and love that we get from you, our clients.

We would also like to take this opportunity to reflect on the year that has been and share some important information with you. 

In January, our annual price adjustment will come into effect. As always, this will be an inflationary-related increase, which allows us to maintain the quality of our product and the service that we offer. Our current prices are available here – we will send out a notice in January to alert you of the new prices.

When looking back on 2019, it was certainly a year of growth for our team, which led to the fantastic accomplishment of being nominated as a Xero App Partner of the Year. Some of the major features and functions that we accomplished were:

  • Custom items based on system items, and the subsequent expansion of this feature
  • Custom employee fields in Basic Info
  • A new leave days report
  • Customisation of employee self-service
  • Bulk actions for once-off payslips and overriding payslip end dates
  • Leave expiration
  • QuickBooks integration upgrade
  • Automatic logout for idle accounts

In 2020, you can expect the team to continue striving to enhance your payroll experience. As always, all added features are completely free for all and do not change the monthly fee that you pay.

From all of us here at SimplePay, have a joyful festive season. We are looking forward to a great 2020 together!

Team SimplePay

Change in Tax Rules for Bargaining Council Funds

As of 1 March 2019, all contributions made by employers to funds provided by Bargaining Councils should be treated as a fringe benefit and are therefore subject to tax. These funds include, but are not limited to sick and holiday funds for employees that belong to the Bargaining Council. Note that if the fund administered by the Bargaining Council is a retirement fund, the taxation rules for retirement funds that are effective from 1 March 2016 (and that provide for a tax deduction to reduce the taxable benefit value) are applied.

In some instances, both you (the employer) and the employee contribute to the fund. The taxable fringe benefit is equal to your contribution and should now be reported on the IRP5/IT3(a) under the following new codes:

  • 4584: Employer contributions to a Bargaining Council Fund
  • 3833: Taxable benefit iro Employer contributions to a Bargaining Council Fund

Employee-paid contributions do not impact PAYE (they are not tax deductible) and therefore are not reported.

What action do you need to take?

If you set up these contributions using a Custom Employer Contribution item, you need to update this custom item on your payroll or Bargaining Council template to a Custom Benefit item.  This will ensure that the contribution is treated as a taxable fringe benefit.

A new checkbox has been added which allows you to indicate that the Custom Benefit item is a Bargaining Council Item. This ensures that the new tax codes are applied to the custom item.

If you have many companies and need to automate this process, please get in touch with our Support team to discuss possible solutions.

If you have any further queries, please do not hesitate to contact us.

Team SimplePay