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Implementing the change for PAYE Information

How would large employers implement the changes?

There are more than 5,700 employers with over 50 employees (this definition of employees includes those who receive student allowances, ACC, New Zealand Superannuation, paid parental leave, ACC and income-tested benefits) ).  Less than 2% of employers and payers fall into this category, but they employ over half of all employees.

These employers often have customised payroll systems, and they are often supplied from overseas. Overseas suppliers may be unwilling to make changes for the New Zealand market unless it is to meet a legal requirement. In addition to developing and testing the software, time may be required to schedule the change and to train staff. Feedback already received suggests 12 – 24 months’ notice of change may be required

Questions

1.  If you have a large payroll, what factors would influence whether you would upgrade it to take advantage of the new PAYE services?

2.  Does an upgrade to your payroll system to provide PAYE information at the time of the business process depend on the law being changed to make this a legal requirement?

Comments

Software training contractor
1. I wish! But I'd be tempted to take advantage of SaaS/cloud options out there & reduce my IT support footprint. Those services are also scalable so fixed costs would be able to be managed. 2. No. A cost saving opportunity would normally do the trick.

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8 months ago
Lyn
Our payroll system currently sends out updates to tax changes etc as they occur. If there was compulsory changes that meant more regular payments of taxes to IRD or compulsory electronic communication straight from the payroll system to the IRD, I would choose to go to manual wages. This is starting to sound too dictatorial to me - why is this necessary to even consider?

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8 months ago
Lyn
Actually, the more I ponder these questions, the more I wonder who is behind them. Our payroll system has recently been taken over by another - one I have never liked. Accounting systems are more and more keen to have monthly charges and "cloud" type storage - out of ones control. Everyone is making money except the small good old New Zealand business people. Technology is fantastic, but the people involved with it are becoming very greedy. The income these services generate for themselves provide nothing to the National GDP. That is, nothing is produced from these funds which generates income for the country. It just bleeds the people dry! Leave the PAYE system alone!

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8 months ago
Chris Peace
1. No comment 2. Yes, but there should be some payback to cover any additional costs

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8 months ago
Suzanne Ashton
1. It shouldn't be compulsory to upgrade to take advantage of new PAYE services. Payroll service providers would have a field day if it was a legislated change. They could charge what they liked instead of the marketplace remaining competitive and keeping costs manageable. 2. No, the ability is already there with our SmartPayroll to provide PAYE information direct to IRD on an end of month basis with PAYE funds being transferred on a 20th month basis.

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7 months ago
Liz McCracken
If the new PAYE system, when implemented, is going to force an upgrade in payroll systems/software, are the Government going to provide this payroll software fee of charge? Sounds to me as if its the good old employer who is going to be hit in the pocket yet again.

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7 months ago
Mario Becroft
Large employers should be able to begin using any new systems when it suits them. Meanwhile, existing systems should continue to be available. If there is a need to retire old systems then at least 3 years' notice is a must for large organisations with complex payroll software systems.

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6 months ago
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