Payroll Update 22 March 2021

News for School Payroll Staff


Tena koutou

Congratulations to everyone for completing Start of Year. The End of Year/Start of Year period is the busiest time for school payroll administrators and Education Payroll staff. We processed a large number of payroll requests and answered a huge number of phone calls during this period.

Holiday pay reduction for teachers

If a teacher takes unpaid leave during a school term, a holiday pay reduction may be needed. At the beginning of each vacation period, required holiday pay reductions are calculated for all teachers who have taken unpaid leave during the term just completed. (In some instances, further holiday pay reductions are required resulting from prior terms.) The holiday pay reduction will be made from the employee's pay that falls over that vacation period. As each sector has its own set of Holiday Pay Reduction calculation rules, we have created a useful table with links to each collective agreement. For more information view the Holiday Pay Reduction (HPR) for Teachers page

School Financial Statements are due to be provided to your auditor

A reminder that you need to provide your Draft Financial Statements to your auditor by 31 March 2021. All Annual Reports (including the Financial Statements) need to be submitted to the Ministry of Education by Monday, 31 May 2021. More information on the School Financial Statement process, and instructions on how to reconcile the SAAR, Leave Liability Reports and Error Schedules in the Financial Statements, are available from the Ministry of Education's website. View School Annual Accrual Report (SAAR) Reconciliation: 2020

School Caretakers' Cleaners' and Canteen Staff 2017 IEA automatic increments in Pay Period 2

Eligible employees who remain on the 2017 School Caretakers' Cleaners' and Canteen Staff IEAs will automatically receive an increment in Pay Period 2, as per their agreement.

Alternatively, these employees can opt to sign the new 2019 IEA. This agreement provides for an increment. Advice of any change in IEA needs to be sent to Education Payroll for processing on a Novo22nt.

Eligible supervisors on the 2019 School Caretakers' Cleaners' and Canteen Staff CA or IEA will also automatically receive an increment in Pay Period 2.

Schools need to advise us by Friday 26 March if any employees covered above should not receive their annual increment. They can do this by sending in a NOVO31 with 'Deferral' in the subject line. You do not need to send a NOVO31 for employees who are moving to the 2019 IEA, just the NOVO22nt.

Special Tax Codes

Employees with a Special Tax Code (STC) need to correct their tax code with Inland Revenue and Education Payroll before the end of the tax year (31 March). Please update your employee's tax code in EdPay for every tax instruction you receive. This will ensure that your employees' correct tax codes take effect in Pay Period 1.

Select the employee then Financial Details in EdPay on the left-hand menu. Scroll down to Other Financial Details and click the (+) symbol (below) to change a tax code.

finance screenshot

Note: please ignore the start and end date that displays when you click save - your payroll advisor will update it.
For more information on Special Tax Codes (or tailored tax codes), please check the Inland Revenue website.

Please check your authorised user report in Novopay Online

It's also a good time to check who the authorised users are at your school and consider whether you need to add an additional back-up or remove anyone. You can run a report in Novopay Online to find your current users. Go to My Reporting and select Online Access/Audit on the left-hand menu.

To set up a new user, send in a NOVO5. Please ensure you have filled in every field and that it is signed by the principal or a designated board member.

Send in a NOVO5c to remove any users who have left your school, or no longer have payroll responsibilities at your school.

Auto-terminations reminder

You must terminate fixed-term employees in EdPay or by using a NOVO6 form so they receive their correct pay. Fixed-term employees who have finished their employment but have not been terminated in the payroll system by the school within two pay periods will be automatically terminated in the system.

When a permanent employee leaves they must also be terminated in EdPay or by using a NOVO6 form.

Easter Tuesday for non-teaching staff

Please book the appropriate leave for 6 April for your 52-week workers, term-time-only and annualised employees with more than 10 years' service who normally work Tuesdays if they are not working on 6 April due to Easter Tuesday being in term time in 2021. Easter Tuesday is only an additional paid public holiday for non-teachers who have less than 10 years of service as per the following collectives:

Caretakers and cleaners

Employees who have completed 10 years' current continuous service are not entitled to Easter Tuesday as an additional paid holiday in their 11th year of work and beyond. This is set out in the collective agreement, Clause 5.5.6(a). This day must be booked as annual leave if the employee is not working on that day.

Ground staff

Employees who have completed 10 years' current continuous service are not entitled to Easter Tuesday as an additional paid holiday in their 11th year of work and beyond. This is set out in the collective agreement, Clause 5.2.5(a). This day must be booked as annual leave if the employee is not working on that day.

Support staff

6.3.7(b) employees entitled to five weeks' annual leave under this clause, shall no longer be entitled to the day after Boxing Day (where provided for in the collective agreement) and Easter Tuesday as additional paid holidays (as outlined in clause 6.1.1(b)). Notwithstanding clause 6.3.1, employees agree to take the day after Boxing Day and Easter Tuesday as paid annual leave days.

NOTE: Clauses quoted are as per the latest publication of the employment agreements.

For schools based in Southland

Please note that the Southland Anniversary Day falls on the same day as Easter Tuesday. Employees with more than 10 years service who are rostered to work on this day will receive their normal pay as a public holiday.

Reminder when increasing or decreasing an existing allowance


When increasing or decreasing the allocation of an existing allowance, do not stop or end-date the current allocation. Just click on the '+', then Add/Update and choose the new total amount.
Example: To increase an employee's fixed-term units from 1 unit to 4 units, click the '+' and click on 4 units (the new total amount).

Clarification re EdPay cut-off (day 6)

As we develop EdPay, an increasing number of transactions are being processed immediately.

Those still needing to be processed by your payroll advisor will show as submitted in your EdPay activity history. They follow the same pay cycle and process as Novoforms, including cut-off times/dates.

To make this clearer, we've updated the fortnightly pay cycle graphic - please view the calendar on our Fortnightly pay cycle page.

calendar

Useful tips for sending a Salary Assessment Application

  • Download a new Salary Assessment Application form from the website to ensure you have the most up-to-date version (last updated 16/03/2021).
  • Please type all the details required into the form. Handwriting can lead to errors.
  • Check the frequently asked questions, application manual, and quick checklist on the Salary Assessment page before sending the application.
  • Please do not reply to closed tickets, as Education Payroll staff won't see the email. Instead, please contact our team on 0508 668 6729, option 3 for queries or concerns. This service is available to both school authorised users and non-authorised users/the public between 9.30 and 3.30 Monday to Friday.

Minimum adult wage and training/starting out rate increase

The new minimum wage rate and training/starting out increases take effect from 1 April 2021. Anyone currently paid an hourly rate below the new minimum wage rate will automatically have their pay rate increased to $20 per hour. These increases will be reflected in the first pay period of the new financial year (pay day is 7 April).