2026/27 Tax Updates
The following tax changes have been added into the system effective for pay periods ending on or after 1 April 2026:
The ACC Earners' Levy rate has been updated from 1.67% to 1.75%. The maximum earnings threshold is $156,641, with a maximum levy payable of $2,741.22.
The KiwiSaver minimum employee and employer contribution rates will increase from 3% to 3.5%.
Fixes and Enhancements
Termination annual leave pay items (including AL on Termination, Public Holiday on Termination, 8% on Termination, and AL Pre-Entitlement Adjustment) are now correctly flagged as superable, ensuring KiwiSaver contributions are calculated accurately upon employee termination.
Payroll calculations for employees with leave or public holidays at the end of an ordinary time tagging period have been improved, so that leave and public holiday hours are correctly prioritised and employees receive accurate ordinary time and overtime payments.
Resolved an issue where Ordinary Weekly Pay (OWP) was not being correctly selected when comparing OWP against Average Weekly Earnings (AWE) in Annual Leave calculations. The system will now default to the employee's pay policy rate in the first instance, as per legislation.
Fixed an issue where marginal tax calculations were being recalculated across pay runs, causing erroneous back pay to be generated in subsequent pay runs after a marginal tax payment had already been processed and published. Marginal tax payments will no longer be recalculated in subsequent pay runs once published.
Resolved an issue where the NZ marginal tax annualised income calculation was only referencing the immediately prior pay period's earnings, rather than correctly summing earnings across the two previous fully paid pay periods.
Resolved an issue where applying leave to a pay run was incorrectly generating back pay for NZ employees, resulting in unexpected additional payments during payroll processing.
Resolved an issue where SSO email whitelist entries containing spaces between comma-separated values were not being parsed correctly, causing all users to be prompted for a password regardless of their SSO exclusion status.
Resolved an issue where client login portals could appear in Google search results..