The idea of setting up payroll for your new employee/s can seem a very daunting prospect. It poses many questions that need very serious consideration. Getting payroll wrong can cost you and your business dearly. Where do you start?
To get straight to the point, did you know you can outsource your payroll? No, I hear you say! Won't that cost me a lot of money? Not necessarily. There are many payroll companies in the market that have different levels of service with various price tiers. Depending on how organised you are with your processes you can keep your payroll subscription to a minimum.
Clients I talk to are unaware of these particular services being available. I recently put a client on to a payroll intermediary service that could offer very reasonable rates. If the client submitted the timesheets for a two-day turnaround then they could save an extra charge per employee per pay run. If the turnaround was overnight then they would pay the maximum charge per employee. The payroll service then collects the payroll total from the client, they then pay the employee/s and file the returns with the IRD.
Who wouldn’t want to leave the hard bits to someone else? In New Zealand, payroll is very complicated especially when it comes to calculating leave entitlements. Payroll intermediaries are trained in compliance and should be able to keep you on track in that respect.
Take a look to see what options are out there for you, and make peace with your payroll.