The Payroll feature is available in Dayforce for organisations with employees in New Zealand to pay their employees and manage their PAYE taxes, superannuation, and so forth. The following is a list of key functionality for New Zealand Payroll:
- Reporting for Payday Filing
- Calculation of taxes, which can include
- Pay As You Earn (PAYE) withholding, taxes deducted from salary and wages.
- Student loans, which are separate deductions that are part of tax obligations.
- SLCIR, the code used for compulsory extra student loan deductions requested by IR.
- SLBOR, the code used for voluntary extra student loan deductions requested by the employee.
- Child support payments, which IR manages as part of tax obligations.
- Calculation of post-tax deductions, which can include
- ESS (employee share scheme) benefits.
- KiwiSaver.
- Calculation of holiday pay, including unworked weeks in the last 52 weeks for Average Weekly Earnings (AWE) and the last four weeks for Ordinary Weekly Pay (OWP).
This functionality is available for organisations in New Zealand that have been appropriately configured. For example, configuring the organisation and associated legal entities, employee taxation parameters, and configuring pay groups and pay calendars.
You can configure New Zealand pay periods to be processed in pay frequencies of weekly, fortnightly (bi-weekly), and four-weekly (lunar payroll frequency).
Important: Checks aren't currently enabled for New Zealand Payroll. If you try to use a manual check, an error message shows.
Information about the terminology used with New Zealand Payroll is available in Abbreviations and Terminology for New Zealand Payroll.
New Zealand Tax Year
The tax year in New Zealand is from 1 April to 31 March.
Payday Filling
New Zealand payroll processing works with Payday Filing or PDF, a government initiative to streamline business payroll reporting obligations. Employers can report payments, such as salaries and wages, Pay As You Earn (PAYE), Employer Superannuation Contribution Tax (ESCT), and so forth, directly to IRD from Dayforce when they pay their employees.
Payday Filing Reporting
Information on changes to an employee's employment details are sent during each pay cycle, when a regular or off-cycle pay run is committed in Dayforce. If a problem occurs with processing entries in a pay run or if any required fields are missing, a warning is shown in the Problems panel when you calculate and validate payroll.
After payroll has been processed, Dayforce creates a Payday filing report in a CSV format in Payroll > Archived Reports. Employers can use these report results to the New Zealand Inland Revenue Department.
Note: New Zealand pay groups that use ConnectedPay don’t use Payday Filing. If your legal entity uses ConnectedPay, don’t make entries in the STP Parameters tab.
Bank File Reporting
To report the net pay values that are paid to employees, Dayforce uploads the bank file to the financial institution for processing in the appropriate bank file format upon payroll commit. After payroll is processed, the bank file is generated and shown in Payroll > Archived Reports.
Payroll administrators have the option to provide alternative contract dates on pay calendars for New Zealand pay groups. You can select a different date other than the pay date on bank files in the Contract Pay Date column in the Pay Calendars tab in Pay Setup > Pay Group. This option provides banks to process bank files earlier (for example, one day before the pay date) and keep the reported pay date on their payroll reports, PayDay filing to IRD, and pay slips.
Employee Tax Codes
To determine that the appropriate tax codes are assigned to them, employees must file a Tax Declaration Form (IR330). If no IR330 is completed, the default no-notification tax rate of 46.39%, which includes a 1.39% ACC levy, is applied.
Gross earnings include benefit allowances (for example, the cash value of board and lodgings supplied).
See Employee Record Setup for New Zealand Employees.
Payslips
Payslips (often referred to as earning statements in noncountry specific Dayforce documentation) are records of wages, earnings, deductions, and PAYE taxes for New Zealand employees. Payslips include the following:
- Employer’s name
- Employee’s name
- Employee address
- Date of payment
- Pay period
- Earnings
- Taxes (current and year-to-date)
- Post-tax deductions (for example, KiwiSaver employee deductions)
- Net pay (current and year-to-date)
| Section | Description |
|---|---|
|
Earnings |
For employees paid an hourly rate, the pay slip must include:
For an employee paid an annual salary, the pay slip must include:
|
|
Taxes |
|
|
Post-tax Deductions |
|
|
Net Pay |
|
Payroll administrators can view pay slips in the following locations:
- In Payroll in the Employee Preview slide-out panel, in the Payslip tab.
- In People in an employee's record under Statements > Earnings Statements.
- In employee self-serve by employees.