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April 1st Payroll Changes: What You Need to Know to Stay Ahead of the Game

If you're an employer in New Zealand, it's important to be aware of the upcoming changes to the minimum wage rates. From April 1st, 2024, the adult minimum wage will increase to $23.15 per hour, up from $22.70. The starting-out and training minimum wages will also increase, to $18.52 per hour up from $18.16.To help you prepare for these changes, we've put together a guide on what you need to know to stay ahead of the game....

The Evolution of Payroll: From Manual to Integrated Systems

Payroll has come a long way from manual calculations and cash payments. As businesses grow, the evolution of payroll progresses through various stages, from manual to automated and integrated systems. By embracing technology, integrating HR functions, and leveraging real-time insights, companies can optimize payroll operations and drive overall business success. It's essential to regularly review and update processes to ensure that your payroll keeps pace with your growing business, enabling you...

5 Payroll Mistakes!

After working for many years for a payroll software company helping business owners and payroll administrators with all their payroll questions (and frustrations!), I noticed something. While payroll software made it possible for businesses to manage their payroll, there seemed to be a knowledge gap resulting in them doing things that could lead them to become non-compliant.And it's no surprise. Payroll legislation in New Zealand is complex, and understanding all the rules – not...

Why having payroll software is not enough to keep you compliant

It’s common knowledge that the Holidays Act is not workable for many businesses. You may be aware that the government has formed a Holidays Act Taskforce to improve the Holidays Act by providing a clear and transparent set of rules for providing entitlements to, and payments for, holidays and leave.  This review finally acknowledges what many in the payroll world have known and struggled with for some time: that the Act’s lack of clarity and certainty makes it difficult to app...

What is gross earnings and how it should be calculated in your payroll software.

It’s no secret that many businesses struggle with understanding the Holidays Act.Despite the fact it’s been around for years, we still hear about businesses getting it wrong. And it’s no wonder, with the New Zealand Holidays Act ranking as one of the most complex in the world. (Global Payroll Complexity Index 2021) In particular, ‘gross earnings’ is one area I find many clients overlook. But it’s an important calculation to get right because, as the core calculation in the ...

Annual leave pay - how to make sure your staff get paid correctly

It’s clear leave is the number one area that trips up many businesses, as we hear more and more reports of non-compliance with the Holidays Act 2003.You may be aware of the Holidays Act Taskforce that the government established to address the high degree of ambiguity that has made the Holidays Act challenging to understand. So, why is paying Annual Holidays so difficult to get right? And why are so many businesses getting it wrong? In this article, we look at some of the key areas of...

Christmas and Payroll - how to get prepared

It's hard to believe another year is nearly upon us. It’s not long now before we can all take a much-earned break to eat good food in the sun while spending quality time with our loved ones. However, this time of year can also be quite stressful, particularly if you’re responsible for paying employees over the Christmas break. Payroll is complex at the best of times, but it’s even more so when you have to factor in things like annual leave and public holidays. That’s why i...

Understanding Annual Leave – accrued, advanced and entitled leave

Leave is probably the most talked-about area of payroll, and it's where I spend most of my time helping clients.On the surface, you'd expect it to be straightforward. But as you will probably now be aware, anything payroll-related is never clear if you employ staff!In this article, I explore what annual holiday leave is, the different stages of annual holiday leave, and how to understand leave balances in your payroll software....

Jumping Hurdles: Understanding Payroll and Public Holidays

One of those busy periods for payroll is when another public holiday rolls around. Depending on what system you’re using, you may have to make some manual checks or even calculations to ensure you’re getting it right. Even then, working out how to pay your employees for public holidays can feel a little like jumping hurdles, with many rules that can trip you up along the way. For example, how do you know if you’re required to pay your staff for public holidays...

Has your employee received a tax bill from IRD?

There has been a lot of noise lately in the media about people receiving unexpected tax bills. One of the reasons is where the employee has ended up with a 53-week scenario. The 53-week scenario can happen depending on the day of the week your employee is paid. Pays for employees that are processed monthly and some fortnights could also fall into this category.  Why some PAYE years have 53 weeks.A year has 365 days (366 days for leap years)There are 52 weeks in a yearEach week has 7 da...

New Sick Leave Entitlement

With winter rapidly approaching and the continued effect of Covid-19, it is timely that sick leave entitlement will increase from 5 to 10 days. The Holidays Amendment Bill has now been passed in parliament and will take effect from 24th July 2021.Here are some details you will need to know as an Employer....