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
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?