Multi-Factor Authentication (MFA) is here

Given the rise in the number of cyber-attacks around the world, we are encouraging our payroll customers to review their own security procedures and implement Multi Factor Authentication (MFA). MFA is also referred to as ’Two Factor Authentication (2FA)'.

MFA is a security measure that requires more than one form of identification, not just a password. It means that even if your password is compromised, there's another line of defence to prevent an unauthorised person from accessing your systems. MFA reduces the risk of unauthorised access to sensitive personal and financial information protecting your data from falling into the wrong hands.

As a Datacom Payroll customer, MFA is a mandatory feature so we can verify and authorise a user’s right to access the payroll information stored on our payroll systems. This roll out of MFA affects all users logging into any of the Datacom Payroll systems, including Direct Access, ESS, Easipay, Datapay and MyPay.

Once MFA is turned on for your company, users will be prompted to register via a simple verification process when they first log into the Datacom Payroll system. There is the option to use either MyPay or a third-party authenticator app as the authentication method.

Once registered, users will still log in using their existing username and password, however a second step will prompt them to provide a secure 6-digit code. The 6-digit code will be sent to a nominated authentication application on the user’s desktop or mobile app.

Frequently asked questions

What authentication applications can I use?
All authenticator apps are compatible. Users can choose to use the MyPay application or a third-party authenticator app, such as Authy or Microsoft Authenticator.

I typically use MyPay, what should I use as my authenticator?
We recommend using the MyPay application as the authenticator to streamline the process. If MyPay is chosen as the authenticator, it will not require users to provide the secure 6-digit code once you have registered.

Can I still log in using Face or Touch ID with MyPay?
If you are using MyPay as your authenticator, you will still be able to log in using Face or Touch ID. However, if you use a third-party authenticator app (for example, Authy or Microsoft Authenticator), you will need to provide a secure 6-digit code provided by the authenticator app to log in.

What happens if I change my phone?
Before you change your phone that you have installed MFA on, you should de-register your current device by contacting your Payroll Administrator.

How does Single Sign On (SSO) affect MFA?
MFA does not affect Direct Access / ESS login if you are already logging in via SSO. MFA will only affect users who log into MyPay and the Datapay or Easipay applications.

Do you have set-up instructions for MFA?
Yes! Please refer to the communications sent to Datacom Payroll contacts at the end of February.

I have further questions, who do I ask?
Please touch base with your Datacom Payroll contact, who will be able to answer any further questions you may have about MFA.

Tax changes

Effective 1 April 2023

As we approach the start of the new tax year, there are several changes set to take effect on 1 April 2023, which we have summarised below.

If you have any questions or require support with any of the information provided, please reach out to your usual point of contact within Datacom Payroll.

Rate updates

ACC Earners’ Levy rate

The Earners’ Levy rate for the 2023/2024 tax year will increase to $1.53 for every $100 of liable earnings. The maximum liable earnings threshold will also increase to $139,384.

Student loans

The annual student loan repayment threshold has increased to $22,828 for the 2023/2024 tax year. This is the income level above which student loan deductions will be taken. This is broken down by pay period threshold amounts in the following table:

If you are using Datapay, we will automatically switch to the updated rates from 1 April 2023.

Commissioner deductions (SLCIR)

Student loan compulsory deduction notices will now be stated based on a percentage of gross earnings and not as a percentage of the standard deduction rate.

Previously, an SLCIR deduction could be up to an additional 5% of an employee’s gross earnings (over the pay period repayment threshold) for primary employment earnings or all earnings for secondary income. However, this was expressed in the deduction notice as a percentage of the standard deduction rate. So, a 5% additional deduction would be expressed in the deduction notice as 41.67% of the standard deduction rate (41.67% of 12% = 5%).

Other legislative changes

New minimum wage rate

The minimum wage is set to increase on 1 April 2023 from $21.20 per hour to $22.70 per hour (before tax). Starting out and training minimum wage will also increase from $16.96 to $18.16 per hour from 1 April 2023.

You will need to update the rate for any employees affected by this change in your Payroll system because Datacom will not automatically update wage rates.

End-of-Year tax procedures

End-of-Year processing will generate a Certificate of Earnings for each employee showing their Gross Taxable Earnings, PAYE, and so on, for the 2022/2023 financial year. Employees may need this information to complete a tax return. In addition to the Certificate of Earnings, ACC Premium Report and YTD Summary Report will also be available.

There will be a charge on the April invoice for End-of-Year processing. This charge is based on 84 cents for each employee paid in the financial year and covers reports, certificates and the additional processes required to prepare the new financial year file.

End-of-Year processing

End-of-year processing for 2022/2023 financial year will occur automatically during the first pay run that has a payday that falls in April 2023, which is determined by the direct credit release date (not the actual period end date of a pay run).

When a pay run is deemed to be the first for April 2023, all end-of-year processing for the company will be actioned as at the previous pay period.

Examples:

A pay run with a period end date of 30 March 2023 has a direct credit date of 31 March 2022:
• The pay run will be included for March in the 2022/2023 financial year.
• No end-of-year processing will take place for this pay run.

A pay run with a period end date of 30 March 2023 has a direct credit date of 1 April 2023:
• The pay run will fall in April with end-of-year reports created prior to processing the pay details.
• This pay run will be the first for the new 2023/2024 financial year.

Disclaimer: The content of this article is general in nature and not intended as a substitute for specific professional advice on any matter and should not be relied upon for that purpose. We expressly disclaim any liability to you or your business in relation to the information contained in this article, and you rely on any information solely at your own risk.