Set Up and Configure an Organisation for New Zealand Payroll

Before You Begin: General information about setting up and configuring an organisation is available in Organization Hierarchy in the Dayforce Implementation Guide.

This topic describes information specific to New Zealand. The following is a general process flow rather than a set of instructions for each of the processes described. Steps for completing each stage of the process flow can be found in topics listed with each stage. The general process flow is as follows: 

• Configure the Organisation Culture
• Configure the Organisation Hierarchy
• Configure Client Properties for the Organisation
• Create Earnings and Deductions for New Zealand Payroll
• Configure Payroll Policies for New Zealand Payroll
• Next Steps

Configure the Organisation Culture

1. Go to Site Setup > Client and click the Cultures tab.
2. Click Add.
3. In the Culture drop-down list, select English (New Zealand).
4. Enter a name and, optionally, a description for the culture.
5. Select the Default checkbox.
6. Click Save.

Configure the Organisation Hierarchy

For general information and instructions about configuring organisation hierarchy, see Organization Hierarchy in the Dayforce Implementation Guide.

Configure Client Properties for the Organisation

General information and instructions are available in .System Admin > Client Properties in the Dayforce Implementation Guide. In addition to instructions provided in that topic and its related topics, complete the following steps to configure the minimum global properties required for New Zealand payroll:

1. Go to System Admin > Client Properties and click the Properties tab.
2. In the General section, take the following steps:
   1. Ensure that the Respect Client Operation Location for Non-Primary Contact Information checkbox is cleared. This checkbox controls whether Dayforce allows international address and contact information for employees’ non-primary records.
   2. In the Client Operating Locations drop-down list, ensure that International is selected.
3. In the Time and Attendance section, select the Apply Higher Minimum Wage checkbox.
4. Click Save.

Create Earnings and Deductions for New Zealand Payroll

Ensure that you have set up earnings and deductions. General information and instructions are available in .Earnings and Deductions in Payroll Setup in the Dayforce Implementation Guide.

Configure Payroll Policies for New Zealand Payroll

General information and instructions about configuring payroll policies is available in Payroll Policies.

• Create an Auto Pay Salaried rule and ensure the following:
  • The Type drop-down list is set to Auto Pay Rule.
  • The Auto pay Earning drop-down list is set to NZL Salary (or the equivalent that you have set up).
  • The Mid-period proration drop-down list is set to Annual 260 Business Days.
  • The Keep per pay period salary constant checkbox is selected.
  • The Pay Net Hours only on Schedule or Shift Rotation checkbox is selected.
• Create an Earnings rule and ensure the following
  • The Type drop-down list is set to Apply Earnings Rule.
• Create a New Zealand Taxes rule and ensure the following:
  • The Type drop-down list is set to Apply NZL Taxes Rule.
• Create a Deductions rule and ensure the following:
  • The Type drop-down list is set to Apply Deductions Rule.

Optionally, you can configure the Prorate Payroll Earning Rule to prorate earnings based on months or weeks by setting the Type drop-down list to Prorate Payroll Earning Rule. See Configure the Prorate Payroll Earning Rule to Prorate Earnings Based on Months or Weeks.

Configure the Prorate Payroll Earning Rule to Prorate Earnings Based on Months or Weeks

According to the New Zealand Holiday Act for annual leave payment, employers are required to determine ordinary weekly pay based on the terms of their employment agreement. Optionally, you can configure the Prorate Payroll Earnings Rule to prorate earnings based on months or weeks to generate the correct leave pay and ensure holiday pay compliance.

To define a prorated payroll earning based on months or weeks:

1. Go to Pay Setup > Entitlements and click the Entitlements tab.
2. Select NZ Annual Leave. A slide-out panel opens.
3. In the Rules and Qualifiers section, select the appropriate ruleset, click the add icon, and then click Rule.
4. Enter a name and description of the new rule.
5. In the Type drop-down list, select Prorate Payroll Earning Rule.
6. In the Number of days to look back field, enter the number of days until the end of the last regular pay period before the holiday based on months or weeks.
7. Select the Exclude current day checkbox.
8. Click Save.

New Zealand holiday pay settings in the prorate payroll earning rule

The following holiday pay settings are NZL-specific to the prorate payroll earning rule.

• Calculate NZ holiday pay dynamically
• Number of periods to look back: Field based on the period type.
• Period type: Weeks, months, or a year.
• Select the Exclude current day checkbox.

If the period type is any of the above mentioned NZ periods, then the day (specified through the business date) is excluded and the lookback periods are moved further back by one day.

Next Steps

After completing these general tasks, you can move on to setting up legal entities for your organisation, which is described in New Zealand Legal Entity Configuration.