• Stella Jansen

Personal income tax cuts and your business.

For business employing staff, the changes to personal income tax thresholds have been incorporated into the withholding schedules and tax tables and will apply to payments made on and from 13 October 2020. Updated tax tables are now available for you to reflect the tax cuts in employee’s take-home pay.

To comply with the new rates you must make sure you are withholding the correct amount from salary or wages paid to your employees for pay runs processed in your system from 16 November onwards. Payroll software providers will be updating software to implement these tax rate changes. Some payroll software providers may take longer to update their software. If you are using a payroll provider, they should keep you updated on these changes and apply them. You don’t need to make any other adjustments or refunds.

4 views0 comments