In this blog , we will explore key considerations to ensure your payroll process is efficient and compliant with New Zealand's various pieces of legislation that can and do affect payroll.
Understand PAYE and Deductions
Pay As You Earn (PAYE) is the tax deducted from employee earnings. As an employer, you are responsible for withholding and paying this tax to the IRD. Additionally, deductions for KiwiSaver, student loans, and child support may apply. Ensuring the correct tax codes are applied to employees can prevent underpayment or overpayment issues.
Calculate Holiday Pay Correctly
New Zealand’s Holidays Act 2003 requires accurate calculation of holiday pay. Misinterpreting holiday pay entitlements can lead to costly errors and disputes. Be sure to distinguish between annual leave, public holidays, sick leave, and bereavement leave. Understanding how to calculate alternative holiday pay rates is crucial, especially for shift workers.
Ensure Your Employees are Paid Accurately
With annual minimum wage increases, staff deductions, court fines and fees, as well as various pieces of legislation (such as the Wages Protection Act 1983) that can affect how you pay your employees, there are actually too many rules out there for any employer to know everything all at once to pay their employees 100% correctly. By investing in outsourcing your payroll to the team at Bing Bong, you can have peace of mind that your payroll is being prepared by professionals who keep up to date with all the changes and rules, so that you don’t have to.
Use Reliable Payroll Software
💻 Investing in payroll software like Employment Hero or PayHero can automate calculations, reduce errors, and save time. These tools integrate with your accounting systems, simplifying the payroll process. Additionally, they can generate payslips, track leave balances, and handle employee records efficiently.
Conclusion
There is a lot to think about when you employ staff, and that’s before they even start work!
Get in touch with our team and they can help support you every step of the way.
