Jacqui Logan.
Payday filing is coming for employers, so the time is right to start thinking about your payroll system:
How do you run it?Have your requirements changed?Does it contain all the features you need?From April 1, 2019, payday filing will become mandatory for all employers, and for most this will require either a change or upgrade to their existing payroll system.
With the new rules coming into effect, Inland Revenue (IRD) are wanting to gain access to payroll information in a timelier manner, which can typically mean within two working days after a payment has been made to an employee. No matter whether you are above or below the $50,000 PAYE (Pay As You Earn) threshold for simplified reporting, you the employer are going to need to make a change.
Online filing through Inland Revenue’s myIR account is one option available to employers, but a better solution for your business may well be an investment in an online payroll package.
Having an automated system, or outsourcing your obligations, can eliminate a great deal of stress and free up precious time for you. These days modern payroll systems can fulfil the new reporting obligations at the push of a button, gaining huge efficiencies for very little cost.
Typical features of a modern cloud-based payroll system can include the following:
Automated IRD reportingOption to outsource PAYE filing and payments — no late payment penaltiesStaff and deductions paid automaticallyLeave calculations — aligned with legislation and automatically appliedApproval of pay-runs anywhere, any timeBehind-the-scene updates — changes in technology and legislation are updated in your system with little-to-no business disruptionMobile timesheets and leave applicationsStaff portal — employees have their own secure login to access payslips, leave balances and their detailsIntegrated with your accounting systemReal-time reporting — for instant analysis.More importantly, additional features can be added as your business grows; such as rostering, facial recognition, clocking in and job on-costing.
It is advised that for the benefit of your business, you take the time to identify what functionalities you require before selecting and transitioning over to your chosen payroll system. You will want a system with the correct mix of services at the best price; one that is reputable, provides outstanding support and has capital to continue developing.
Selecting your payroll system and getting the right procedures in place can take time, so it is advised that employers get moving now to avoid the inevitable last-minute rush.
To further support the process of change, it is recommended that an information systems specialist (who is also an accountant and payroll adviser) be brought on board to ensure the selection and set-up process is managed correctly from the outset. Such qualified advisers work closely with employers to gain a greater understanding of their unique needs and requirements.
The desired outcome is the creation of a tailored solution that addresses all the information requirements for the IRD as well as offering practical suggestions to keep potential payroll systems streamlined and efficient.
If you would like to speak in more detail about any payroll-related queries, then please join us for a free coffee at Raglan Roast from 8am to 10.30am on 13 December and in the new year on January 24. Alternatively, contact the BDO Gisborne office on 06 869 1400 and ask to speak to our specialist Information Systems Team.
Jacqui Logan is a senior consultant at BDO Gisborne. She works closely with clients to assess and implement information systems and reporting for their unique requirements.