At Moneyworks we are a small business (there are five of us). We concentrate on assisting our clients with their financial
planning, KiwiSaver and insurance needs.
We don't have the time (or frankly the interest), to keep up with all the different changes to taxation and how it affects each employees.
Yes, it is our job to assist our clients to remember to keep up with the relevant tax changes for KiwiSaver, Insurance and their Financial Planning, but for us, long gone are the days where we used an excel spreadsheet to organise our payroll.
We have used two different external payroll providers and since 2009 we have used Smartpayroll with 100% satisifaction.
Why are we so happy with them?
1. They are 'cloud based' - so I can still process the payroll when I am overseas on leave. I don't have to train anyone else to do it.
2. They look after the PAYE (I no longer have to remember that a payment is going out of my bank account on the 20th of each month). They PAYE is taken out at the same time as my fortnightly payroll.
3. With an extra 5 seconds of work, all our team get a detailed payslip each pay.
4. I can quickly get all the reports that I need at the end of the year for the accountant. I can check any outstanding leave balances during the year.
5. They trained me on the phone on how to set it up and use it. Since then, doing the payroll takes me around 5 minutes at most (when there are lots of public holidays) each fortnight.
6. I know that they will update me on any changes to payroll and taxes that I need to be aware of.
7. All this (and probably more that I don't use or need) for only $30 a month.
If you don't have a payroll system yet, check SmartPayroll out at http://www.smartpayroll.co.nz
Payroll intermediary subsidy for SME's with payrolls of less than $500,000 pa (This is for a different service to using your own payroll provider like we do).
This is an option that you may prefer - for more information, click here.
Employers who pay less than $500,000 in PAYE and ESCT each year are eligible for a subsidy if they use a listed PAYE intermediary. The subsidy is to encourage small employers to outsource their payroll services so they can focus their efforts on growing their business.
A payroll subsidy of $2 per payday per employee is available. It is available for up to five employees and is paid directly to the PAYE intermediary.
REMEMBER the goal is to NOT have IRD chasing you for outstanding taxes!
If you have any thoughts or opinions that you would like to share, visit us at our Facebook or Linked In pages, and comment.
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By Carey Church