Payroll in NZ - Not for the faint hearted!

Payroll….It could be so straight forward; I mean you’ve got all the software and it’s really just data entry, right? 

Well, not quite….

You may not know this but payroll legislation in New Zealand is one of the most complex in the world! So you’re not to blame if you find yourself struggling when pay week comes around. There’s also a big difference between punching a bunch of numbers into a payroll system, and understanding, checking, evaluating and recording the calculations behind the numbers. 

Payroll needs to be efficient and well managed, and it's hard to keep up with all the constant changes. If you’re processing your own payroll right now, it’s quite likely you may not be currently compliant with the law! Kinda scary huh? As bookkeepers we’re pretty well versed in understanding and operating within the bounds of the law. We’re also generally analytical types and being as used to numbers and the financial sphere of the business as we are means this onerous and time consuming task comes a lot easier to us. It’s important to remember there are many processes when it comes to payroll; not all of which are automatic. No matter which payroll software you use, it can never be fully automatic as payroll encompasses not just finance and IT, but also law. 

You may be thinking about hiring an in-house administrator to do the payroll for your business. This can, however, be a costly investment that your business may not be able to afford, and what happens when your payroll person takes leave or is away sick? Outsourcing, in this case, is an excellent option, as you only pay for the service you use. 

At Kowhai we are payroll certified and are members of the NZPPA (New Zealand Payroll Practitioners Association). This means we receive ongoing training and stay up to date with all the changes in legislation (that are coming through thick and fast at the moment!) so you don't have to. 

As your business grows, so too does your number of employees. Payroll is one of the most important aspects of your business and it’s not for the faint hearted. If you are finding this task is becoming harder or you’re nervous you may not be completely compliant, it might be time to consider outsourcing to an expert. 

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