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

Leave is consistently the number one area where businesses fall short on payroll compliance, and the reports of Holidays Act non-compliance haven't slowed down.Reform is on the way. The Government is actively developing replacement legislation to simplify the rules around holidays and leave, but the Holidays Act 2003 remains in force until that work is complete.In the meantime, the complexity is real, and the compliance obligations haven't changed.So why is paying annual holidays so difficult to...

How payroll evolves as your business grows

Most business owners don't think much about payroll until it becomes a problem. And by then, it's usually costing them time, money, or both.The good news is that payroll typically follows a pretty predictable path as a business grows – and understanding where you are in that journey can help you figure out what’s next. Here's how it usually goes....

Why having payroll software isn't enough to keep you compliant

It's well established that the Holidays Act has been a headache for businesses for years. Too complex, ambiguous, and easy to get wrong even when you're trying to do the right thing.The good news is that reform is now actively underway. The Government is developing new legislation to replace the Holidays Act 2003, with the goal of providing a clearer, more workable set of rules for holidays and leave entitlements. The existing Act still applies until the new legislation is passed, but the acknow...

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

'Gross earnings' is an area many businesses overlook. It’s the foundation for several key calculations under the Holidays Act, and getting it wrong means errors flow through to annual leave payments, average daily pay, final pay, and more. The downstream effect is often bigger than people realise.In this article I'll walk you through what gross earnings includes, what it doesn't, and how to calculate them correctly for your employees....

Sick leave and the Holidays Act reform

The increase from 5 to 10 sick days took effect in July 2021 as planned, so if you updated your employment agreements and payroll system at the time, that part is sorted.The bigger development since then is that the Government is now working on a full replacement for the Holidays Act 2003 - the law that governs sick leave, annual leave, and public holidays.The current Act is known for being complex and easy to get wrong, so the reform has been a long time coming. Until the new legislation is pas...

Public holiday payroll made simple: what you need to know

New Zealand public holidays can be tricky for payroll – especially if you're juggling multiple roles in your business. With Christmas, New Year, Waitangi Day, Easter and ANZAC Day all seeming to roll into each other, now is a good time to make sure you've got the key rules sorted.If you're ever unsure, you're not alone. Many business owners and payroll administrators find public holiday pay confusing. This guide covers the essentials so you can process payroll with confidence....

What happens in a payroll review (and why you need one)

A payroll review isn't about catching you out or highlighting failures. It's a proactive compliance measure that gives you certainty. Either everything is fine and you have peace of mind, or there are issues and you've found them before they become bigger problems.Here's what actually happens during a payroll review with me, from that first phone call to what comes next. ...

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've probably come to appreciate, anything payroll-related gets complicated the moment real employees are involved.In this article I explore what annual holiday leave is, the different stages of leave, and how to make sense of leave balances in your payroll software....

Has your employee received a tax bill from IRD?

A 53-week year is a common reason for an employee to receive an unexpected tax bill. It's worth understanding what's going on so you can reassure them (and know what they need to do)....

How to choose the right payroll system for your New Zealand business

"I wish I'd called you three years ago."I hear this more often than you'd think. Business owners who've been wrestling with a payroll system that looked perfect on paper but causes headaches every fortnight. The accountant loved it, the price was right, it integrated beautifully with their accounting software. But each time payroll came, it felt like battle after battle with more hours spent double-handling and doing manual updates. The issue usually stems from a system being chosen for accounti...

The hidden risks of outsourcing payroll in New Zealand

Outsourcing payroll sounds like the perfect solution. Hand it over to an expert, free up your time, and stop worrying about payroll compliance. The problem is that most businesses discover too late that outsourcing doesn't work the way they expected.You're still legally responsible for every payroll error, every underpayment, every compliance breach. Outsourcing the processing doesn't protect you when things go wrong....

How to calculate public holiday pay correctly in New Zealand

Last month I spoke with a business owner concerned about an employee complaint. The employee, a health worker who worked varied shifts, noticed he had been paid less on his public holidays than what he would have earned if he had worked those shifts.This is a payroll situation I see often: a default way of doing things can unexpectedly lead you into underpayment territory.Public holidays are one of the trickiest areas of New Zealand payroll because there are multiple rules at play. Whether someo...

Do you have what it takes to be great at payroll?

If you've ever done a personality test – Myers-Briggs, Enneagram, StrengthsFinder – you know there's no single "perfect" type for any job. But payroll definitely attracts certain traits.Payroll isn't data entry. It's not about knowing which buttons to push in your system. The businesses that get payroll right understand it's a strategic function that requires a specific combination of skills – skills that have nothing to do with software proficiency and everything to do with how you think....

5 signs you need a payroll audit

When was the last time you took a proper look at your payroll? Most business owners fall into two camps:Assuming everything’s running smoothlyHaving a nagging feeling it's not set up 100% correctly but you've figured out some workaroundsBut payroll issues don’t usually announce themselves politely and with plenty of warning. They catch you by surprise and become urgent problems – and that, interestingly, is when I meet most of my clients for the first time.Realising you’ve been underpayi...

Why Employment Hero is my top payroll software recommendation

After five years working with businesses across New Zealand on their payroll systems, I get asked the same question often: "What payroll software do you recommend?"My answer is almost always Employment Hero.Now, to be completely up front with you, I’m actually an Employment Hero partner. But that came as a result of me loving and using the software so much, rather than the other way round.It’s not the only software I work with, but it’s often my go-to when helping a client set up a new sys...

KiwiSaver guide for employers: what you need to know

If you employ people in New Zealand, you need to understand KiwiSaver. Not just the basics of "deduct 3% and send it to IRD" – but the actual rules that determine whether you're doing it correctly.KiwiSaver seems straightforward until you start looking at the details. ESCT rates that need annual reviews. Opt-out windows that are stricter than most employers realise. Contribution calculations that your payroll system might be getting wrong.Here's what you need to know, explained in plain Englis...

April 1st payroll changes: your annual compliance checklist

Every year on 1 April, the Government's annual minimum wage review takes effect, and in recent years, that has consistently meant an increase. Almost every year, some employers get caught out, either because they missed the update, or because the increase has knock-on effects they hadn't thought through.This blog is designed to be a practical checklist you can revisit each April. The specific figures will change year to year, but the things you need to check stay largely the same....

5 payroll mistakes business owners should watch out for

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...