Ensuring your employees get the right amount of time off this will them healthy and happy. Taking leave from work is necessary for every employee: it improves their work-life balance, eases stress and unplanned days off, and strengthens long-term performance.

If employees know their leave requests are managed correctly and are getting their correct leave privileges, they will have more faith and trust in your business and further motivate them to help you succeed.

With effective leave management, paying employees correctly and on time needs to be taken sincerely if your business to be successful.

For starters, all businesses must meet a host of legal obligations under the many laws that cover payroll processing, such as the Wages Protection Act 1983, Minimum Wage Act 1983, Income Tax Act 2007, Employment Relations Act 2000, and Holidays Act 2003.

The most basic payroll process must confirm that employees are paid at least the minimum wage and at the frequency mentioned in their employment agreement, managing with the acceptable method (cash is the legal default).

You must make the appropriate deductions to include PAYE, including the ACC earners' levy for employees or tax on schedule payments (formerly withholding payments) for certain contractors. Then some deductions may be needed, such as Kiwi Saver, ESCT (employer superannuation contribution tax), child support, student loan repayments, payroll giving, lump-sum payments and bonuses, allowances, and particular benefits you pay.

It is compulsory to keep records for the number of hours each employee works each day in a pay period and receive payment for those hours (a statement of those hours and pay for those hours if worked regularly), as well as planned leave and leave, and retain them for at least six years.

Even for a small business, running and processing payroll require sample time and resources, primarily if handling the process in-house using manual (or semi-manual) systems. But thinking of the impact when cutting corners or having sub-par practices might have on the company.

Employers and management are the ones eventually accountable for any payroll mistakes. Failure to calculating and employees pay correctly could result in arrears being due or fines from a Labour Inspector, the ERA, or IRD. Also, any interest and possible legal if your workers, depending on their income and pay mistakes, will negatively affect their confidence and loyalty to the company. A US study revealed by the Workforce Institute at Kronos found that 49% of workers would start looking for a new job after encountering just two significant issues with their pay (24% would look for another job after their first payroll miscalculation).

So nevertheless, your business handles payroll or uses an outside service provider; the person or team in charge of payroll is significant to your business.

Timekeeping and pay records must always be up-to-date and correct at all times. Any changes to an employee's hours, pay, or operational arrangements must be updated right away, and any adjustment to the day or rate of payment must have their written permission. Employment laws also change constantly, so the business needs to be aware of it and meet its responsibilities.

Staying watchful is key. If you accept rather than check that the numbers and records are accurate, there is a good chance a mistake will creep in overtime.

With a perfect, professional payroll system, good data records going in should guarantee good results with the coming out. This will get you on the right side of your employees and the law and give you a meaningful awareness of your labour costs, impacting hiring and investment decisions and long-term profitability.