How will KiwiRail contact me?
Current employees who are owed money will be sent a letter outlining the amount owed (Gross value, i.e. before tax and other deductions) and the date that the payment will be made.
Past employees who had not previously registered with us and who are owed some money have been sent a letter to either the last known email address or the last known home address. The letter informs the employee of the process to complete to register their information.
A further letter will be sent to the past employees who have registered. The follow-up letter will advise the amount owed (Gross value, i.e. before tax and deductions) and the date that the payment will be made.
Past employees who had registered prior to receiving a letter may not be owed any money. KiwiRail will be writing to these employees to notify them that there is no money owing to them.
I’ve worked for KiwiRail on and off over the years. Will I get multiple letters/payments?
Some of our employees have held multiple periods of employment with KiwiRail during the review period (for example, seasonal contracts with Interislander). KiwiRail has bundled up these amounts to make one payment using the employee’s unique IRD number.
I have received a very small payment (for example, less than $1). Why did you bother to contact me?
We know these may seem like small amounts. However, KiwiRail is both legally and morally obliged to ensure you receive any payment owing to you, regardless of the value.
How will any payment affect my income tax or benefits?
Payments have been treated as an ‘extra pay’ for tax purposes. You will be taxed in accordance with the tax code you provide us. KiwiRail encourages you to contact other relevant organisations, such as Inland Revenue, for advice about whether this payment affects any agreements you have with them about your current earnings, benefits, child support or any other matters.
The Inland Revenue website contains useful information on the tax treatment of lump sum payments such as an arrears payment.
How will KiwiSaver contributions be managed?
If you have told KiwiRail you are in KiwiSaver, deductions and contributions will be calculated as part of the any payment.
How will student loan repayments be managed?
If you have told KiwiRail you have a student loan tax code, student loan repayments will be calculated as part of the payment process.
What if I have been overpaid?
A number of overpayments been identified and KiwiRail acknowledges that these payments were made in good faith. We accept responsibility for any overpayments and will not be seeking to recover those overpayments from staff. This is in line with the approach of other organisations.
What happens if a payment hasn’t been claimed?
All payments will stay with KiwiRail for a period of 6 years from the date of the first payment. If the payments are not claimed within a 6-year period, they will then go to the Inland Revenue (IR) as unclaimed monies. This will then need to be claimed and processed through IR. This is in line with sections 6, 7 and 8 of the Unclaimed Monies Act 1971.
Will payments include interest?
No. A number of factors have been considered in deciding whether it was appropriate for KiwiRail to pay an additional amount in the form of interest or compensation. These factors included the following:
Is this the only payment I will receive?
The first phase of the payment will cover 1 April 2011 through to mid-February 2019.
There will be future payments (covering mid-February 2019 onwards) once we have implemented the needed system and process changes. These payments will likely be smaller due to the smaller time period.
Who do I contact for further information?
If you have any further questions or concerns, please feel free to contact the project team at the following email address: HolidaysAct@kiwirail.co.nz
Updated on 26 June 2020