Payroll

Every experienced business owner knows that as a company grows and expands, so does the work required to run it. Hiring more employees to cater to this increased workload and support the growth of the business is something that every employer must do. Most experienced employers will already have some understanding of the processes involved in payroll accounting such as needing to deduct PAYE from their employees’ wages and accounting for payroll taxes. However, for new employers starting out, or employers with too much to do and too little time to do it, learning how to navigate the ins and outs of payroll administration can be frustrating.

At Premium Accounting Solution, we offer a wide range of accounting and payroll services to make our client’s lives easier and give them more time to focus on growing their business. Below, we outline the various elements included in payroll accounting that every employer should be aware of.

1. Employment Contracts

Before a new employee can start working for a company, employers need to sign an employment contract with them to officialise their employment relationship.

2. Tax Code Declaration

Tax code declaration (IR330) forms need to be completed by employees before they receive their first wage.

3. KiwiSaver Registration

All New Zealand citizens or permanent residents will automatically be enrolled in the KiwiSaver scheme when they start a new job. It is the employer’s obligation to notify them of this process.

4. Bookkeeping for Working Time

Employers need to keep a record of their employees’ working time, without micromanaging. If used correctly, a payroll system can be very beneficial for a business to use, such as providing insights into the company’s efficiency and promote employee productivity.

5. Holiday Pay

All employees are entitled to have holiday pay when they enter into employment. Normally this sum is paid in the final pay they receive.

6. Different Kinds of Leave: Sick Leave, Annual Leave, Bereavement Leave

Your payroll system also needs to keep track of the number of days an employee uses throughout the year for their leave, including the total leave allowance available to them, and any carry-over holiday time from their previous work year. Employers should be aware and record all leaves taken by employees. This includes all kinds such as sick leave, annual leave, bereavement leave, and so on.

Having an efficient payroll administration system will not only make managing your tasks easier and more achievable, it will also elevate the productivity of your business and give you more time to focus on the company’s growth and development. Furthermore, if used correctly, payroll administration can also help maintain a positive work environment by ensuring your employees are happy and confident that they will receive wages correctly and on time. This increases employee satisfaction and motivation to work.

As an employer, you must ensure that all information required for payroll administration is completed for new employees, and it’s your responsibility to keep all relative records for each employee. Keeping track of and recording payroll accounting can be time-consuming and challenging for many employers. If you are a new employer who doesn’t have enough time to educate yourself on payroll administration, or if you’re an experienced employer in need of efficient, time-saving solutions, rely on Premium Accounting Solution!

For employers looking for excellent payroll system solutions to maximise the efficiency of their business, our team of experienced and professional accountants is here to help you! As a well-established accounting firm in Auckland, we provide a range of excellent payroll services for New Zealand employers. Our clients can expect nothing but the best service when working with us. We offer training on all areas of payroll accounting, and our professional accountants can walk you through all processes involved, so you can learn to manage and navigate payroll systems with confidence. When teaching our clients, we also provide recommendations on high-quality payroll software and train you to use it.

Furthermore, for employers who want to outsource their payroll work and save more time on the hassles of routine accounting processes, you can leave it to us! We can easily take care of all payroll administration for you, from processing your weekly payroll, preparing Payslips, filing PAYE returns with IRD, managing your employees’ sick leave, holiday leave, and more.

Book an appointment with us today to discuss which accounting payroll services are right for your business. Simply provide us with the relative information, and we can handle the rest.