IRD and Income Tax updates for 1 April 2025
Update tax on lump sum payments to IRD's specifications
Lump sum payments relating to end of employment are taxed differently. Terminations will automatically use the new calculation method, however if paying a lump sum outside of a termination payment you can now indicate the payment is relating to the end of employment
We’ve also added an ‘Auto Calculate’ option for the tax percentage. Leave it to us to calculate the correct tax rate for the lump sum
Update ACC Earners' Levy to IRD's specifications
Update KiwiSaver ESCT to IRD's specifications
Increase minimum wage from 1 April 2025 to $23.50
We published a blog post with all the juicy details about IRD's changes coming into effect on 1 April 2025.
Terminations
If employee is processed with an end date prior to the pay period start date, the employee can be left in subsequent periods.
Employees will now be successfully terminated, they will not show in subsequent periods.
Balances will be zeroed out in payslips for the period an employee is terminated in.
UI
Period pay total on company home screen is misleading and differs from the total banking value
The value shown in the 'To Do' tasks will now reflect the total pay value for a period
Contract Builder retired
The team at Federated Farmers have been working hard to bring you a brand new contract builder platform which we know will be a great addition to your employment toolkit. Their new platform is nearly ready for launch, further info will be available on Federated Farmers’ website.
The current PaySauce Contract Builder was retired on the 31st March 2025. This means you will not be able to purchase new contracts on the PaySauce Contract Builder after 31 March 2025. New contracts will be available to purchase directly from Federated Farmers.
The PaySauce Contract Builder will remain online until 31 March 2026 for you to access any paid contracts. We recommend you download a copy of your contracts before 31 March 2026.
Bug smash
Close and Pay issues - Bureau logins
Now: We identified a workflow bug which prevented Bureau users from performing actions
Bureau account wrongly redirected to platform after login after password reset
Now: Bureau accounts will be directed to their payroll dashboard after password reset flow
Employee Details Report showing KiwiSaver incorrectly when opted out
Now: When the KiwiSaver setting is disabled, the employee details report will now accurately reflect this
Student Loan customised percentage rate dropping from Employee profile page
The rate was being stored in the database but wasn't displaying in the UI. It will now show correctly in the UI
Leave Payment History report - Not showing a 1.5x rate for public holidays worked.
Now: The report will now accurately reflect the rate paid
Contact phone number was limited to 12 characters
Now: We allow up to 15 characters as standard