NZPPA’s primary aim is to support payroll practitioners but we also want to help small to medium-sized enterprises (SME’s) to pay their employees correctly. We will continue to add useful information and links to this page to help SME’s.

See below to learn more about:

• Education options for SME’s
• What official records every employer must have for their payroll
• What is a Tax intermediary (external payroll provider)
• Checklist for selecting a Tax intermediary
• Why move from a manual payroll to a payroll application
• Selecting a payroll application
• Checklist for selecting a payroll application

Education options for SME’s

NZPPA has a number of courses that are relevant to SME’s running a manual payroll or basic payroll application. The courses that would suit a SME are:

• Running a manual payroll (1 day)
  This course covers the process, what IRD forms to use and how to use them and the reporting requirements; also doing the various calculations.
• Payroll Foundations Skills (3 Days)
  This course covers the legislation that must be followed in paying your staff.
• Payroll Calculations (1 Day)
  This course covers the calculations required by legislation in depth.

* See the training menu for a full course description, dates and online booking form.

* NZPPA can also provide one-to-one training if requested (additional costs would apply).

What official records every employer must have for their payroll

There are two main records that are required by law for payroll. If you are running a manual payroll the records will be paper-based (see later in this section) or if you have a payroll application the data entered into your payroll application can be accessed through printing out reports.

The records are

• Wage and time record (Section 130 of the Employment Relations Act 2000)
• Holiday and leave record (Section 81 of the Holidays Act 2003)

*The forms above are from www.ers.govt.nz.

The above links will give you examples that you can use; otherwise these types of records can obtained in book form from a stationery store.

PAYE Intermediaries

As an SME you may decide not to process the payroll for your staff yourself. If this is the case and if you meet the criteria detailed below you may be able to have your payroll processed externally and be eligible for a $2 subsidy per payday per employee.

What is a PAYE Intermediary?

A PAYE intermediary may be an existing payroll service provider, accountant or other tax professional who can provide payroll services to an employer. To receive the PAYE subsidy they must first register with us as a listed PAYE intermediary.

PAYE Intermediary scheme (IRD)

Employers who pay less than $100,000 in PAYE each year are eligible for a subsidy if they use a listed PAYE intermediary. It is to encourage small employers to outsource their payroll services so they can focus their efforts on growing their business.

The subsidy is $2 per payday per employee and is available for up to five employees. The employer and PAYE intermediary must arrange which employees the subsidy will apply to.

Depending on the level of service you require, the subsidy may cover part or all of the cost of using a PAYE intermediary. The subsidy is paid directly to the PAYE intermediary.

More details can be found on the following link:

http://www.ird.govt.nz/technical-tax/legislation/…/leg-2006-3-paye-subsidy.html

Choosing a PAYE Intermediary

If you are choosing a PAYE intermediary you should be satisfied they can provide the services you require (look at the checklist later in this section).

It is important to ask your payroll intermediary whether they are registered to receive the subsidy.

Finding a PAYE Intermediary

Not all payroll providers are registered as PAYE intermediaries. Click on the following list to see the current list from IRD:

http://www.ird.govt.nz/payroll-employers/…/#PAYEintermediaries

*The list is not updated frequently so ask the payroll intermediary to provide details of being registered.

If you are a registered PAYE intermediary NZPPA will list your business for free in the following table. Please email your request to: [email protected].

Registered PAYE Intermediaries

Table is being constructed.

Becoming a PAYE Intermediary

If you are a payroll provider you may apply to become a PAYE intermediary by completing the PAYE intermediary registration form (IR910) available from the IRD website.

Checklist for selecting a Tax Intermediary

This form will be added shortly.

Why move from a manual payroll to a payroll application?

This section will be added shortly.

Selecting a payroll application

To be added.

Checklist for selecting a payroll application

To be added.