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Insight, news and updates from Alliott NZ Chartered Accountants, Auckland New Zealand. The views expressed here are the views of the author and should be discussed in further detail should an article be relevant to your individual circumstances.

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Do your own payroll using Xero

Written by Alliott NZ Chartered Accountants Auckland on November 19th, 2015.      0 comments

Many businesses in New Zealand process payroll themselves for number of reasons:

 
  • xero payrollIn-house processing is more cost effective than outsourcing
  • To maintain control over payroll data and wage information
  • To handle last-minute changes
However, many of these businesses manually perform the payroll process by calculating payroll each pay period entirely on paper or excel spreadsheets. Even though it is an inexpensive method of performing the payroll process with this approach there is a high room for error which can result in penalties from the IRD.

The new payroll system launched by Xero in March 2015 does not only eliminate the manual errors and tremendously labour intensive data entry and processing but it can also flawlessly transfer the payroll information into your Xero accounts.


This saves a great deal of processing time every pay period. Take a look at the features list below to see how Xero payroll can make life simpler for your business:
 
  • Payroll journals are automatically created on the general ledger when posting the payroll.
  • Relax with the peace of mind that Xero automatically looks after tax calculations for you. Built-in Tax, ACC, Student Loan, Payroll Giving & ESCT calculations. 
  • Manage KiwiSaver details including employee eligibility, employee and employer contribution rates, opting out and contributions holidays.
  • Electronically report your payroll information with the Inland Revenue. Your reports are created, pre-populated for downloading and upload to the Inland Revenue with IR-File including KiwiSaver, Additional & Voluntary Student Loans and Child Support.
  • Create unlimited and flexible earnings, deductions, including Payroll Giving, and reimbursement types to meet the needs of any business. No limits on the number of pay calendars you can create so you can easily have multiple pay frequencies to suit your business needs.
  • Manage Statutory Deductions for Child Support, Court Fines, MSD Repayments and Inland Revenue Arrears.
  • Download your bank’s payment file for ease of upload into online banking to pay your employees.
  • Easily and accurately accrue and record employee holidays and leave accruals including managing leave entitlements for individual employees
  • Invite employees to access pay history, payslips, view leave requests and request new leave via the employee app without seeing the business or payroll financials. Available online via the web on release along with iOS and Android phones shortly afterwards.
  • Collaborate with your accountant or bookkeeper on payroll. Allow them to manage payroll on your behalf by giving them the Payroll Administrator user role.
With Xero your business payroll functions are computerised, accuracy and efficiency will be greatly improved and your business can save money and time in its payroll operations.

For more information on Xero payroll setup, please contact us on 09 520 9200. 

 

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