Significant points to look for in a payroll

Payroll is a huge part of any business. It involves every employee, from recording and paying salary or wages to calculate bonuses, benefits, deductions, taxes, and appropriate leave payments and accruals.


It begins from employment onboarding and will continue after the employee leaves, the calculation of notice entitlement, and the legal responsibility to retain records.


In most companies, payroll is one of the essential expenditure items, and it is every company's responsibility to ensure it is done correctly. Getting it incorrect could affect staff confidence, be added expenditure, and possibly put the business in difficulties with the law

Many companies are managing payroll in-house. However, an increasing number of New Zealand businesses are opting to use a payroll service provider that makes running and tracking payroll more accessible, faster, more precise, and in many cases inexpensive.


Choices for payroll solutions prosper, from full-service solutions to essential add-ons to accounting software, and it is necessary to weigh up the choices, so you get the one that best suits the business.


There is no urgency. If you make the proper judgment on your payroll service, it will contribute to your business success, freeing you to paying attention to your customers and building the business.


Here are some points to be taken when you are looking for a particular payroll package.

Online

Using a web-based solution seems pretty obvious in this day and age, but it is a significant deal-breaker. If you are not using an online digital service, you are already portraying catchup.


Online payroll software provides you with 24/7 access to and complete control over your payroll information, so you can effortlessly update it or disclose it when you need to, e.g., with your accountant or Inland Revenue Department (IRD).


Having the storage of your payroll data managed by a trustworthy provider reduces possible payroll risks, eliminating the need to house it on your systems and improving security. In addition, you won't have to limit the number of users or be concerned about expensive license fees for each user, and you can effortlessly manage access levels.


A trustworthy payroll service provider will prepare updates, fixes, and tax and other legislative adjustments instantaneously and remotely. There will be a lot of time and effort to save, making you stress-free that your payroll will be accurate and you will also be meeting your compliance obligations. In addition, you will not need much in-house IT assistance.

Must-Have Integration with your accounting and HR software

Suppose you are doing double-processing of information or manually processing and reconciling payroll. In that case, getting a service that integrates with your existing accounting and HR tools is an excellent solution.


It will mean all your implementations use the same data set, creating an interaction between payroll, accounts, leave management, performance appraisals, and other HR processes.


You will need to enter employee details just once. After that, your information will always be up-to-date and accurate, with fewer errors that can happen when you manually transfer data between programs.


There will also be more learn about the advantages of integrating payroll and leave management.

Complying with legal compliances

We talk a lot about how stressful to comply with legal compliances regarding employment and tax law for businesses. However, it is more significant for smaller businesses.


Many payroll characteristics are covered by New Zealand legislation, such as PAYE, Kiwi saver, holiday pay, and Employer Tax Credits, and these laws regularly change.


A trustworthy payroll service provider will provide their expertise and oversight of current legislation.


Ensure that you are always compliant (be careful when signing up with a service provider with no local knowledge).


So aside from saving you time and headaches, you will also evade any possible penalties and enhances inspections.


Simplification

The right payroll system should make your administration work more straightforward rather than adding to it. The software should be easy to set up and use, and the conversion must be immediate and effortless. On the other hand, if you require explanation and training, it probably will be problematic to operate, which means you will be devoting resources that can be employed elsewhere.


Think about your business requirements – the number of employees, payroll complexity (e.g., variable rosters vs. fixed hours salaries), growing staff and staff turnover changes, etc. – then find the best offer that will suit them. You must have the freedom to access and process your payroll while getting a service that performs most of the demanding work for you.


Technology is continually changing, so you should look for a provider that improves their product and needed safeguards.

Automation

Automation is your companion when it comes to payroll.


Look for features that will have leave-balance calculations, automated timesheets, and taxes, direct payment management, as well as important reminders and notifications.


Having an automated payroll process will save you time and reduce the chances of human error. In addition, paying your employees accurately and on time will keep them contented and happy and meet the tax deadlines and commitments. Finally, this will keep IRD off your back.

Payday filing

As of 1st April 2019, all NZ businesses that pay more than $50,000 annual PAYE and Employer Superannuation Contribution Tax must file payroll information to Inland Revenue Department (IRD) electronically after every payday. This is as known as payday filing.


An excellent online payroll service must process payday filing effortlessly. Then, instead of uploading your files every time you pay your employees, the software will send them to IRD automatically. More details are available at the Inland Revenue department website IRD.govt.nz

Must contain Self-service features

Another feature to consider is how much of the payroll processes the employees can do themselves. The less administration your management staff will have to do, as most people can do.


Each employee must get an individual profile with access to their payroll information, including pay statements, schedules, and breakdowns. In addition, they should be able to fill in tax details, update personal information, review their appraisals, and book leave, which is part of a good HR service.


Some providers offer the added accessibility of an app that your employees and you can download.


Besides this lightening of workload, self-service delivers a lot of transparency, so everyone can see precisely where each one is.

Processing appropriate Records and Reports

One of the benefits of an online payroll solution can maintain records and generate detailed reports, putting essential financial and staffing information at your fingertips so you can make well-informed conclusions and how best to operate your business.


The essential function of a payroll system is to keep records accurately in real-time for all payroll operations and have them store for tax and audit purposes. In New Zealand, you are legally obliged to keep payroll and accounting records for seven years.


A sound system will give you easy visibility of your payroll and employee information and be data-rich and customizable.


Check to see what kind of dashboard and reports payroll services offer, and if you are not an expert, your accountant should be able to give you the breakdown for the ones you require and may want regularly.

Profitability

Unless you are delighted with your number of employees and don't ever plan on the business expanding, that is unlikely. Operating on a web-based payroll solution will mean you should not replace the systems as your business grows.


Choose a provider that can manage your long-term needs. For example, it should be easy to add additional users and employees to your account and explore which other services can be added over time and how much the cost would be.

On-Going Support

A sound payroll system should go hand-in-hand with adequate customer support. Chances of you being a business owner and not payroll or technical expert, you will need assistance and direction at some point. Besides detailed website information and tutorials, you should expect live, in-person support via chat, email, or phone.


Support should not only be helping at the time of sales and set-up; it needs to be ongoing. However, if you find you need help, that means the product is not doing its job. A web-based payroll solution should be dependable and easy to use.

Word to the wise: do some homework

A poor payroll service can cause a whole heap of pain (Novopay anyone?), especially if it isn't well-built, proven, or doesn't suit your organization.


Do your due diligence before signing up. Make a list of what's most important to your business and find a service that has the features to meet those requirements. Ask for recommendations from friends, associates, and your accountant. Look at user feedback and take up trial offers.


Communication with the vendor is vital. They should be keen to know your company and your needs, and their services and pricing structure should be transparent (keep an eye out for expensive add-ons or hidden fees that may turn a bargain into a money pit).


Also, be aware that the cheaper options may require doing a lot of processing work yourself, which will cost you time and expense in the long run and increase the risk of errors. On the other hand, a full-service offering will quickly pay for itself over time.

Professional-Pointer: Correct set-up from the onset

Even when you've found the perfect, full-featured, fit-for-purpose online payroll system, you (and the provider) need to take the time to set it up for your business correctly.


We can't overstate the importance of this step. We've seen plenty of problems with incorrect holiday pay calculations caused by poor payroll set-up and incomplete data entered into a new system. If this happens, the payroll provider is not responsible for any errors and potential legal consequences; your business is.


Correct, complete set-up will go a long way to reducing risk.

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Bookkeeping

You can create any structure you want by using the same tools as in the regular workflow. Add buttons and forms or anything else you'd want.

Being experienced with an accounting background, we can offer a wide range of reliable and accurate bookkeeping services. A common question often asked is, "What exactly does a bookkeeper do? "The answer to this question is shown below for our services as specialist bookkeepers. We can,of course, modify our services to suit the needs of your business whether you need a few of these services or all.

·      Accounts Receivable*-Invoice preparation and follow-up with the client

·      Accounts Payable* - Suppliers' invoices are processed and paid when due.

·    Bank Reconciliations -Reconciling Bank and Credit Card accounts with daily bank feeds

·     GST Filing                        - Timely filing of Bi-Monthly or Six-Monthly returns

·     System Training               - Training is required whenever you choose new software. We provide free training.

·    Accounting Software conversions – With our expertise, we can switch your accounting information to XERO/MYOB

·        Payroll

·        Unlimited Email Support

*Note:- Accounts Receivable and Accounts Payable are closely monitored to ensure that your business has no issues with cashflow

Payroll Management

Business Pillars offers all-inclusive payroll services that help your business run efficiently. We are committed to being legally compliant. Our services are built to simplify payroll processes for small to medium-sized businesses throughout New Zealand.

PAYROLL processing made easy

We provide the most updated payroll solutions tailored-made that is affordable to your requirement. We are committed to taking care of all the work demanded, allowing you to focus your time and energy on more essential things you love to do.

Our payroll services are:

·        Employees pay, On-time payments including benefits, reimbursements, deductions, Weekly/Fortnightly/Monthly

·        Employee PAYE

·        Payday Filing   – Timely filing returns to IRD

·        Leave entitlements– Accruals for each type of leave

·        Leave Payment - As per Holiday Act 2003

·        KiwiSaver contributions

·        Maintaining payroll records – payments and documentation

GST Filing

Timely Processing

We ensure that we file all GST Tax returns two weeks before the due date. We keep our clients informed before we proceed. This ensures that the client is at ease.

·        GST Filing        - Timely filing of Bi-Monthly or Six-Monthly returns

Monthly / Quarterly Advisory

The clients are in a position to process their reports from the software chosen. Based on the service requested, additional reports are also given that are not available in their chosen software. These reports enable the client to make corrective business decisions. Business Pillars reaches out to clients who require more assistance.

Monthly Management Meetings

The primary purpose of a monthly management meeting is to get the business to grow. This is either done through a phone call, zoom, or meeting in person.

Cash flow Management

Managing cashflow is a significant responsibility faced by most small businesses. We reach out to businesses making it stress-free to ride on the highs and lows of the cash flow throughout the year.

We assist in producing a cashflow statement which is a financial statement that summarizes the amount of cash entering and leaving the business. The cashflow statement measures how well the business can manage its cash position, meaning how well the business can generate cash to pay its debt commitments and fund the day-to-day operating expenses.

Budget Forecasting

Small business budgeting and forecasting

We need to get some relevant numbers to know what the future will look like regarding a business. Budgeting and forecasting will help to support this vision. Business Pillars can work alongside you to understand these basics so you can build a financially sustainable business.

What is a budget?

The budget estimates how much money will come in and go out from your business over time (usually a year). Budgeting and forecasting normally benefit all businesses and first-time startups to see if they can afford to run the business and compensate for all their hard work with a good return for their initiative.

What are the main principles of having a budget

Budgets forecast the money-making possibility of a business. It will also highlight things like:

  • How much will it cost to startup?
  • How much money is needed to borrow?
  • When will be the breakeven point?
  • How much should the customers be charged?
  • How many staff are needed?

Monthly / Quarterly Advisory

The clients are in a position to process their reports from the software chosen. Based on the service requested, additional reports are also given that are not available in their chosen software. These reports enable the client to make corrective business decisions. Business Pillars reaches out to clients who require more assistance.

Job Management

Job Management is software that supports project managers and teams to complete client requests and projects efficiently. Most professionals depend upon this job tracking software which assists them in supervising multiple sections of a business. Business Pillars are here to assist in setting up this service to track income and expenses related to service jobs.

XERO and MYOB both have the capability for Job Tracking

These are the advantages:-

·        Create quotes immediately

·        Easily track jobs from quote to invoice

·        Schedule the jobs on the go

·        Get paid quicker