NZ - Payroll Tax Tables 2024/2025 - July Update - IETC Fix

Modified on Mon, 20 Apr at 12:15 AM

Version 2 - 13 August 2024

The NZ - Payroll Tax Tables 2024/2025 - July Update contained an error in the IETC band $66,000 to $69,999. This has been fixed in the TaxRates.txt file below. Please download and load this corrected TaxRates.txt into your Synergetic.

IETC Error - Email to NZ Schools

From: Graham Kidd educationhorizons.com>
Sent: Wednesday, August 14, 2024 10:58 AM
To: Graham Kidd educationhorizons.com>
Subject: FY 2025 NZ IRD TaxRates.txt IETC Issue and Fix (Synergetic)

Dear Graham,

This email contains information about the Synergetic NZ payroll functionality and is intended for payroll and IT staff of NZ Synergetic schools.

The taxrates.txt file NZ - Payroll Tax Tables 2024/2025 - July Update contained an error in the Independent Earner Tax Credit (IETC) band $66,001 to $69,999. This error affects earners who have chosen either of ME or MES tax scale, causing them to be over-taxed.

These tax scales are:

ME - ME Main income - Independent Earner Tax Credit (IETC)
MES - ME SL Main Income with Student Loan & IETC

This error has been fixed in a new TaxRates.txt file which has been made available at:

NZ - Payroll Tax Tables 2024/2025 - July Update - IETC Fix 1

For specific conditions earners will have paid incorrect tax amounts and will require investigation and possible corrective action by schools. These conditions are:

Tax Scale ME or MES,
have an annual income between $66,001 and $69,999 inclusive, and
have been paid between 31 July and the loading of the replacement taxrates.txt file into Synergetic

We recommend you download and load the latest taxrates.txt into your Synergetic as soon as possible; and analyse the pay(s) of staff who fit the above criteria for any errors in their tax. A valuable resource for this is the PAYE deduction tables published by NZ IRD at:

https://www.ird.govt.nz/employing-staff/deductions-from-income/deductions-from-salary-and-wages

Further Information

As always, if you have any further questions or concerns, our Support team is available to assist:

Support Portal: https://help.synergetic.net.au
Phone: 1300 498 642

Yours,

Graham Kidd

This TaxRates.txt contains New Zealand FY25 (Updated) NZ IRD and Australian FY25 ATO Tax Rates.

Changes in the update

Items updated include:

Income Thresholds
Subtraction Amounts in Tax Calculations
Independent Earner Tax Credit (IETC) Thresholds
Employee Tax Code Descriptions for Secondary Incomes

Downloading the tax rates file

Download the tax rates file via the following link:

TaxRates.txt
Save the file to your preferred file directory.

Loading the tax rates

IMPORTANT

This step should only be performed once you have completed all pre 31 July pays for the FY25 payroll year. If the tax rates are applied before the last pay is completed, then the original FY 25 rates may apply incorrectly to 31 July and later pays within the 2025 financial year.

After downloading the tax rates file, the new rates can be loaded into Synergetic.

To load the tax rates into Synergetic:

Select Module > Payroll > Load Tax Rates.
The Load Payroll Tax Rates window is displayed.
Click .
Navigate to the file directory where you saved the TaxRates.txt file.
Select the file.
Click .
The file path is loaded into the Load from Directory field.
Check the file path is correct.
Click .
The Confirm window is displayed.
Ensure you are uploading Version 2 - V2
Confirm that the message mentions “31 July 2024 (FY 2025) V2”.
Click .
The tax rates will load and Synergetic will be updated with the new figures ready to use in your first FY 2025 pay.