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Partner updates

Keep up to date with the latest KeyPay features and developments.

(AU) 10 June 2022

EOFY system updates


It's that time of year again and, as always, we are committed to taking the stress out of EOFY and making it easier for you to prepare for the financial year ahead. This update will detail further system changes we have made and also includes resources to assist you with EOFY processes.

Firstly, users can now create pay runs for the 22/23 FY. The notable changes effective automatically for pay runs with a date paid on or after 1 July 2022 are as follows:

  • The legislated superannuation guarantee (SG) rate will increase from 10% to 10.5%, which will automatically apply to eligible businesses. Our previous partner update has further information on this and who is deemed an eligible business;
  • The $450 monthly threshold will no longer apply and rather SG will be calculated on all OTE earnings. The $450 threshold will be removed automatically for all eligible employees as explained in our previous partner update;
  • The maximum superannuation contribution base (MCB) will increase to $60,220 per quarter. From 1 July 2022, the new MCB amount will be displayed in the employee Pay Run Defaults screen. Prior to that date, the system will continue to show the MCB rate applicable for the 21/22 financial year;
  • The genuine redundancy cap has increased to $11,591 (base limit) and then $5,797 for each completed year of service;
  • The ETP cap for life benefit termination payments has increased to $230,000;
  • STSL updates have been applied for the new financial year due to the annual indexing of the repayment income thresholds.

Note: The Federal Budget on 29 March 2022 did not result in any changes to normal tax rates or income thresholds for the 22/23 FY. The extension of the low and middle income tax offset to $1,500 is only claimable when individuals lodge their income tax return for the 21/22 FY. Therefore, there are no changes to weekly, fortnightly or monthly tax tables.

STP exemption for WPN holders

The exemption for WPN holders reporting via STP has been extended for another year. The new mandated start date is 1 July 2023.

It's important to note that if you want to start reporting via STP earlier than 1 July 2023, you will need to use a registered Tax/BAS agent to do it on your behalf. This is because the ATO does not currently support online lodgements for WPN holders.

EOFY resources


If you're processing year end with STP, please refer to our STP EOFY Guide for instructions on how to complete the process. We also recommend you register to attend one of our upcoming webinars that will be held on:

  • Thursday 23 June 2022, 11am AEST | Register
  • Thursday 30 June 2022, 11am AEST | Register

If you cannot attend on the day we will be sending all registrants a copy of the recording to be viewed at a more convenient time.

If a business is exempt from STP reporting and will therefore be generating payment summaries as part of year end processing, refer to the Payment Summary EOFY Guide for instructions. We will not be hosting a webinar this year on payment summary year end processing. Rather, we suggest that users refer to last year's webinar as the process is the same.

Lastly, our blog nicely summarises all the highlights of the joy that is EOFY!

(AU) 06 June 2022

Get ready for super changes from 1 July 2022


As we approach the new financial year, we wanted to let you all know our plans for how we’ll be managing the upcoming changes to super eligibility and the SG rate increase in the platform.

All system changes will be updated automatically, for the most part, so that when pay runs are created with a date paid on or after 1 July 2022:

  • The $450 minimum threshold will be removed, meaning that employees will be paid super on all eligible earnings regardless of their monthly earnings amount; and
  • Super contributions will be calculated at the increased rate of 10.5%.

Now, why do we say "for the most part"? This is because some businesses may currently have specific settings configured in a manner that prevent us from applying one or both of the super change updates to a specific employee or all employees within that business. Some scenarios are evidently clear that no update should be made, for eg if an overtime pay category currently has a super rate of 0%, this will remain untouched. However, there may be other scenarios that we strongly suggest be reviewed to ensure business and employee settings are configured correctly and thereby included in the automatic system updates.    

We have created articles on both the super changes to ensure there is complete transparency and substantial detail around how these changes will apply in the platform, how it will affect existing employees and what settings the system will ignore when applying the updates. The articles are:

It is recommended that you thoroughly review these articles in order to determine whether any manual intervention is required.

Stronger validations for BSB and bank accounts sent via the API
Effective 6 July 2022

In order to avoid issues regarding incorrect data for BSB and bank account numbers being sent to KeyPay via API, we will be strengthening the system validations on bank details. Currently, BSB and account numbers are being created or updated successfully despite letters being included and the absence of a maximum character limit, and is ultimately causing payment file upload errors.

As a result, stronger validation checks are being introduced to ensure that only numeric values are accepted. Additionally, a maximum length will be upheld for the BSB (6 digits) and account number (10 digits). These validation checks will apply to both business and employee bank accounts. Specifically, the validations will be added to the following endpoints:

POST /api/v2/business/{businessId}/employee/{employeeId}/bankaccount PUT /api/v2/business/{businessId}/employee/{employeeId}/bankaccount/{id}
POST /api/v2/business/{businessId}/employee/unstructured
PUT /api/v2/business/{businessId}/employee/unstructured/{employeeId}
POST /api/v2/business/{businessId}/aba
PUT /api/v2/business/{businessId}/aba/{id}
POST /api/v2/business/{businessId}/employee/{employeeId}/selfmanagedsuperfund
PUT /api/v2/business/{businessId}/employee/{employeeId}/selfmanagedsuperfund
POST /api/v2/business/{businessId}/selfmanagedsuperfund
PUT /api/v2/business/{businessId}/selfmanagedsuperfund/{id}
POST /api/v2/ess/{employeeId}/bankaccounts
PUT /api/v2/ess/{employeeId}/bankaccounts/{id}
POST /api/v2/ess/{employeeId}/selfmanagedsuperfund
PUT /api/v2/ess/{employeeId}/selfmanagedsuperfund/{id}
POST /api/v2/ess/{employeeId}/details
POST /api/v2/business/{businessId}/payschedule
PUT /api/v2/business/{businessId}/payschedule/{id}

These changes will be released on 6 July 2022 to ensure sufficient time is made available for our partners to make the necessary API updates, if required.

(MY) 31 May 2022

Legal name field for employees

A new employee 'Legal name' field has been added for the purposes of accurately reflecting the name on an employees' identity card or passport. This is an optional field, and if entered, the name will be used when statutory reporting forms are populated.


The 'Legal name' field can be found in the following system areas:

  • Employee file > Details page;
  • The Add employee wizard;
  • The employee onboarding wizard;
  • Employee import file;


In addition to the above, the following API endpoints are available:

EIS report

Available 1 June 2022


We have now made available the option to export the EIS report as PDF/Excel for the convenience of clients. Additionally, the EIS report has been made available via the 'Reports' page, as well as it's current functionality of being exported upon the finalisation of a pay run.


Note: The PDF and excel versions are internal payroll reports only (for client use) and are not to be submitted to EIS. Only the TXT file is to be submitted to EIS.

The support article can be found here.

EPF enhancements

Available 1 June 2022


We have made enhancements to the EPF rate and Additional Employer EPF setting within the Business > Statutory settings. The enhancements include:

  • The ability to apply the EPF rate at 9% or 11% at the business level, which will then apply to ALL employees. However, if the EPF rate at the employee level is different to the business settings, then the employee level settings will override the business settings;
  • Additional Employer EPF (options $ fixed or % of gross) can also be applied at that business level, and if so, additional employer EPF will be applied to all employees. If there are additional employer EPF also applied at the employee level via pay run inclusions, then the business level > additional employer portion will be added on top of the employee level> additional employer EPF portion.


The following API end points apply:

Pay slip display enhancements
Available 1 June 2022

In relation to pay slips, we strive to provide as much clarity and transparency as possible. With this in mind, we have made the following pay slip enhancements:

  • The start and end date is shown if the employee only worked part of the pay period (ie started midway through or terminated). This is separate to the pay period start/end date;
  • Only Statutory types that are employee by nature will be included under the deductions category. This includes EIS, EPF & SOCSO employee contributions as well as PCB, Zakat, PTPM, religions trip and LWOP (LWOP will also continue to be shown under the 'Leave details' section).
  • 'Contributions' is renamed 'Statutory contributions' and include pay items that are employer in nature (employer EIS, EPF, HRDF & SOCSO contributions);
  • The addition of a new setting on the Business settings > Pay slips page which will 'hide' the employees address. This setting in turned on by default.

(NZ) 30 May 2022

Accrued leave visibility - Phase 2

In this partner update, we announced work had been done which meant that any accrued annual holiday leave would display on pay slips. As part of phase 2, we are pleased to announce the following additional functionality:

  • Accrued leave balance will now show within the employee and manager portals. However, visibility within WorkZone will be released at a later date;
  • Leave request emails that are sent to managers will show both the accrued and entitled leave.

It's important to note that in order for the above to be shown, the following settings must be configured:

  • "Show leave accruals" is ticked under Business Settings > Payslips;
  • "Leave entitlement to start after" is ticked in Annual Holiday leave category settings;
  • "Hide Accruals from payslips" is not ticked in Annual Holiday settings;
  • "Standard Allowance" is set to Standard weeks per year or Standard days per year in Annual Holiday settings

Please see the support article for all changes to date regarding accrued leave.

(SG) 30 May 2022

Splitting of MBMF deductions

In order to provide more accurate reporting on MBMF deductions, we have made some changes to the system to store the split of the Mosque building and religious education (contribution) and Mendaki (donation) components.


The main changes are outlined below:

Deduction categories

  • Mosque Building and Mendaki Fund (MBMF) system deduction category has been renamed to MBMF - Mosque building and religious education (classified as a 'contribution');
  • A new deduction category has been created for the Mendaki component: MBMF - Mendaki (classified as a 'donation').

Pay run inclusions

  • MBMF deductions can only be set up as 'Varied based on earnings amount'. The tiers have been configured according to the published MBMF rates;
  • Existing MBMF deductions that were previously set to 'fixed' or 'percentage of gross' have been updated to 'Varied based on earnings amount' with both deduction category/components set up.


The above changes also apply when using the API and pay run inclusion import and flow through to the IRAS reporting.

CPF calculation enhancements

We have made an enhancement to the way that CPF is calculated. Prior to this, the CPF calculations assumed that an employee worked for the full 12 month period, and as such, used the average earnings over that period to calculate the AW cap. With this change, the system will now automatically complete a recalculation of CPF if an employee is terminated during the year. The system will also automatically recalculate CPF when the pay run falls in the month of December. Users are able to manually recalculate the AW cap at any point in time via the Actions > Recalculate CPF option within the pay run. This will then charge any underpayments of CPF on additional wages, if required.


Note: This release is recalculating the AW cap and CPF applicable. There is no pro-rata calculations for partial months or multiple CPF rates during the period, however this is currently being worked on.

(NZ) 4 May 2022

Updates to AWE, OWP & ADP calculations


For the past few months we have undertaken a deep dive into AWE, OWP & ADP calculations. As part of this, we have implemented the following system changes to improve compliance within the platform:

AWE

  • Only relevant historical earnings are included in the calculation;
  • The system will calculate the number of weeks from an employees' start date if an employee has less than 52 weeks of service (as opposed to the number of weeks from their first pay run);
  • The AWE context panel now shows the dates that the gross earnings have been calculated from.

OWP

  • The system will override calculations with the OWP agreed rate to ensure employees don’t get leave paid at a rate lower than their normal hourly rate;
  • If the employee has less than 4 weeks of earnings, even though the system used the correct divisor in the calculation it still showed 4 weeks as the divisor – this has now been corrected to show the correct divisor.

ADP

  • The system will now take into account unpaid leave and changes in the number of days worked each week;
  • The system will override with the Relevant Daily Pay rate as needed to ensure employees don't get the leave paid at a rate lower than their normal hourly rate;
  • Previously, if an employee only had historical gross earnings and they took a daily based leave in the first pay run that was processed, the system was adding the first day of the KP pay run and using a divisor of 261 – this has now been corrected.

Note that in order for the system to perform the correct calculations, the employee work pattern must be correct. If they are set to a basic work pattern the system will assume 5 days per week Monday to Friday. If the employee is working less days per week or their 5 day work week is from Wednesday to Saturday for example, they must be setup on an advanced work pattern.

For a more detailed rundown on the changes, see the following articles: ADP | OWP & AWE

Adding an employee's tax code will become simpler
date to be advised

Currently, when adding/updating employee tax details via the employee import or API, we require that users complete a few fields to then determine the employee's tax code. This also applies to employees when they're completing their tax declaration via the employee self setup wizard.We'll be simplifying this process by removing the source of income setting and subsequent questions and instead will allow users to direct input the tax code pertaining to the employee. This will not only simplify how an employee's tax code is added to the platform but also be in line with the information employees must complete in their tax code declaration form.There are several areas in the platform that will be affected by this change. They are:Employee import (including flat file import)The following columns will be removed from the imports:

  • TaxCodeDeclaration_IncomeBand
  • TaxCodeDeclaration_StudentLoan
  • TaxCodeDeclaration_IsNonDisclosed
  • TaxCodeDeclaration_IsPrimaryIncome
  • TaxCodeDeclaration_NewZealandResident
  • TaxCodeDeclaration_ElectedExtraPayRate
  • TaxCodeDeclaration_MeetsMainIncomeMeansTest
  • TaxCodeDeclaration_FtcOverseasSuperOrPension
  • TaxCodeDeclaration_IncomeAppliedToTestedBenefit

A new column, "TaxCodeDeclaration_TaxCode", will be added to the imports. This column will be in substitution of all the above columns and will be used to specify the employee's tax code. This new column will contain a dropdown list of all valid tax codes.Employee Tax Code Declaration screen & Employee self setupThe 'Source of Income/Income Category' setting and subsequent questions listed in the tax code declaration screens will be removed. Instead, the user/employee will only be required to input their tax code in the existing 'Tax Code' field. A dropdown list of tax codes will be added to the 'Tax Code' field to ensure only valid values are added.APIThe following properties from the NzUnstructuredEmployeeModel resource will no longer require a value in order to determine an employee's tax code:

  • taxCodeDeclaration_ElectedExtraPayRate
  • taxCodeDeclaration_IncomeBand
  • taxCodeDeclaration_StudentLoan
  • taxCodeDeclaration_IsNonDisclosed
  • taxCodeDeclaration_IsPrimaryIncome
  • taxCodeDeclaration_NewZealandResident
  • taxCodeDeclaration_MeetsMainIncomeMeansTest
  • taxCodeDeclaration_FtcOverseasSuperOrPension
  • taxCodeDeclaration_IncomeAppliedToTestedBenefit

The above properties will be removed from our API documentation. In substitution for the above, a new property, "taxCodeDeclaration_TaxCode", will be added and the value contained in this property will be what determines the employee's tax code. The possible values for this property will be: M, M SL, ME, ME SL, S, S SL, SB, SB SL, SH, SH SL, ST, ST SL, SA, SA SL, CAE, EDW, NSW, STC, WT, ND.In order to ensure our API partners are not affected by these changes whilst the relevant updates are performed at their end, we will continue to accept the above redundant properties to determine the employee's tax code. Please note however that the "taxCodeDeclaration_TaxCode" property will always override any other value so please ensure that the redundant properties are no longer used once the new property is added, to avoid confusion of the tax code source.We are yet to confirm a release date for this work, however we envisage it will not be for at least two months. We will provide another update once we have a confirmed date.

Are you a member of ICNZB?


We're looking to learn a bit more about our partners who are affiliated with ICNZB (Institute of Certified Bookkeepers New Zealand).

We’d love to get an understanding of your goals and challenges and to hear more about your experience with KeyPay, to help more bookkeepers find success with us.

Simply reach out here if you’re available to share your thoughts. We’d greatly appreciate your insight!

Frequently asked
questions

When does invoicing occur?

You will receive your invoices on the 1st of each month and payment is taken on the 8th of each month.

How is monthly billing achieved for our branded payroll solution?

If you have a branded payroll solution in place KeyPay will never bill your clients directly. As a partner, you are required to bill your clients. KeyPay will invoice you directly each month.

How is billing calculated?

You will only receive a per employee monthly charge for active employees. An employee will be considered ‘active’ when at least one of the following actions has been completed for that employee during a calendar month:

  • Included in a finalised pay run (even if that pay run is subsequently unlocked)
  • Has had an approved leave request                        
  • Has had an approved expense request
  • Has had a published roster shift
  • Has had an approved timesheet

Can we access a demo payroll business?

KeyPay doesn't provide pre-filled demo accounts. If you wish to create a demo account you can make a test business in your branded payroll solution. Trial periods are not automatically available so you will need to request this by contacting: