PayGlobal consults with NZ Government on KiwiSaver

PayGlobal consults with NZ Government on KiwiSaver

Christchurch, New Zealand, April 2007

PayGlobal, New Zealand’s leading Payroll and HR solution supplier, has increased its prominence as a leading advisor on KiwiSaver after close consultation with the NZ Inland Revenue Department regarding the legislative requirements of the upcoming introduction of KiwiSaver.

While there are general concerns in the media that the Government will not have its workplace savings scheme in place on time, PayGlobal is KiwiSaver - ready based on the current legislative requirements including the late changes made in December for employer tax exemptions.

“We are excited with the whole KiwiSaver concept.” Commented Melissa Clark-Reynolds CEO of PayGlobal.

Members of the Christchurch-based PayGlobal team have met on a regular basis with government regulators to ensure their systems will comply with the requirements by the July 1 deadline. These meetings will continue in the future – covering KiwiSaver and other IRD related topics. Because of PayGlobal's commitment to this forum their staff have acquired an in-depth knowledge of the legislative and implementation aspects of the KiwiSaver scheme.

“PayGlobal’s close consultation with the government means our product is 100% KiwiSaver ready and we are across all future changes already tabled by the Government.

We are also planning a seminar series in Wellington, Christchurch and Auckland, scheduled for late April / early May, with PWC, Westpac and Fraame Solutions to try and help companies distil the implications of KiwiSaver and the ensuing impact it will have.“ she added.

KiwiSaver in brief

KiwiSaver is a government initiative involving employers, KiwiSaver scheme providers and several government agencies. Governed by various Acts including the KiwiSaver Act, passed in September 2006, it is a new, voluntary, work-based savings scheme that aims to encourage New Zealanders to develop long-term savings habits and to accumulate assets. The scheme is designed to make it easy for people to maintain a regular savings pattern and is expected to improve their financial independence and well-being, particularly in retirement. Membership of KiwiSaver will not affect eligibility for NZ Super.
KiwiSaver is open to all New Zealand residents and people entitled to live here permanently, aged up to 65 - the age of eligibility for NZ Super. Most new employees will be enrolled automatically into KiwiSaver but may choose to opt-out during a prescribed period. Employees not subject to automatic enrolment may choose to join ("opt in").
The government will also kick-start each KiwiSaver member's account with $1,000, tax-free. The scheme offers a first home deposit subsidy of $1,000 for each year of membership, up to a maximum of $5,000.

IRD key dates
Between September 2006 and May 2007
Information about KiwiSaver will be published and available through employer conferences and forums. Inland Revenue will also write directly to employers.

April 07 The updated version of the Four-weekly and monthly PAYE deduction tables (IR341) will be ready, with calculations tables to make it easier to work out KiwiSaver deductions.

May and June 2007 Employers will receive starter kits and an initial supply of KiwiSaver information packs for new employees. They will be able to order more through INFOexpress, IRD's automated stationery system.

July 07 More information will be available on the IRD website (http://www.ird.govt.nz), including details of how to manage employees' KiwiSaver details and operational and technical support available for employers.

About PayGlobal Limited www.payglobal.com

PayGlobal is a fast growing people management solutions company providing fully integrated payroll, rostering, time and attendance, human resources, and self-service software. The company, which is majority privately held, has offices in Sydney, Melbourne, Brisbane, Wellington, Auckland, and Christchurch.

PayGlobal products are used at over 800 sites worldwide to pay and manage more than 400,000 employees. Customers include Sydney Opera House, Pumpkin Patch, Goulburn Valley Water, Vodafone, Multiplex, Healthcare NZ, Western District Health, CSL, Australian Catholic University, Auckland University of Technology, Outward Bound, Hume Alliance, West Wimmera Health, Mildura Base, Ryman Healthcare, ACNielsen, Qualcare Trust, IHC New Zealand, Southern Institute of Technology, Compass Group, and Elastomer Products.

ENDS

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