Empower Your Business

Accounting is Just the Beginning

By

Payroll – Making it Work

Accountancy + Business Advice Centre Payroll

Most small businesses struggle to cope with payroll processing. Whether you have 1 or 100 employees, it is has to be 100% correct as nothing can undermine an employee’s confidence more than if their pay or leave has been incorrectly calculated. As with all areas of business, you need a system to follow:

  1. Ensure timesheets are signed off at the time.  Many queries from staff are regarding hours worked or not.
  2. Understand KiwiSaver and especially automatic eligibility, as KiwiSaver forms must be completed correctly before the first pay run.  Although it’s been around a while now it’s still causing problems.
  3. Deal with sick or annual leave during the relevant payroll period and make sure you keep clear, detailed and eligible records.  Deductions which have to be made later outside the relevant payroll period can easily be forgotten about.
  4. I’m still meeting business owners without employment contracts. Ignoring the law for the moment, not having written policies leads to uncertainty and regular claims against employers.
  5. Be aware of the rules on annual and sick leave. Many are still treating employees as casual, not paying holiday pay at all or calculating annual leave based upon standard pay ignoring the last 52 weeks.

If you can’t afford to sub-contract out your payroll, get it checked regularly, as in the long run, it could save you plenty at the Employment Tribunal! If you would like a free review of your payroll to pick up any problems before it is too late call Nick on 0800 ASK NICK, or e-mail nick@abac.co.nz.