Glossary | Help | Payroll Service

ACC: The Accident Compensation Corporation (ACC) administers New Zealand�s accident compensation scheme, which provides accident insurance for all New Zealand citizens, residents and temporary visitors to New Zealand. In return people do not have the right to sue for personal injury, other than for exemplary damages. (See ACC web site).
Active People: The Personal Details for a Person who is currently employed by the organisation. (See View Current People).
Backpay: A payment given to a person when they receive a back-dated pay increase. (See Backpay Help).
Bank Account: The number identifying the bank, branch, customer number and account number that payments are made to or from. (See Bank Deduction Help).
Bank File: A file containing Direct Credit transactions that is transmitted to your bank to pay your people, deductions, superannuation and processing fees.
Bank Schedule: A report produced with every payroll that lists all payments made from the organisation's bank account. (See Bank Schedule).
Banking Date: The date that the payroll funds are taken out of the organisation's bank account to pay staff. This is one (working) day before pay day.
Casual: A person who receives Casual Holiday Pay payments each pay instead of accruing annual leave. (See Casual Holiday Pay).
Closed Payroll: A payroll will be closed by us after your processing fees have been received. Once a payroll is closed it is completed and copied into history. You cannot run another payroll until the previous payroll has been closed.
Confirm Payroll: A payroll must be confirmed before we will process it on your behalf. Once a payroll is confirmed your bank account will be debited (if we are managing your banking), and finally closed. (See Confirm Payroll).
Cost Centre: Payroll transactions may be charged against cost centres to provide various costing reports to help you manage and analyse payroll costs. (See How to Set Up Costing).
CSD: Child support is money paid by parents who are not living with their children, to help financially support their children. The scheme is administered by Inland Revenue. (See Child Support).
Deduction: An element that defines the rules controlling how deductions are made from a person's pay. (See Deductions).
Direct Credit: An entry in a Bank File.
Direct Debit Authority: A form signed by your organisation authorising iPayroll to debit funds from your bank account to manage your banking on your behalf. (See Banking Options).
Element: A generic term for a Payment, a Deduction or a Leave code that defines the rules controlling how that element is calculated and paid. (see Standard Elements).
ESCT: A tax deduction taken from a Superannuation Subsidy. (See Superannuation Subsidy).
Final Pay: A person is given a file pay when they leave the organisation and their personal details are made inactive. (See Final Pay).
Gross Pay: The total dollar value of all payments, including leave, made to a person or included in a payroll. This excludes processing fees and superannuation subsidies. (See, for example, Payroll Summary Report).
GST: Goods and services tax (GST) is a tax on the supply of most goods and services in New Zealand. It is generally charged at a rate of 12.5%. (See GST).
Inactive Person: The Personal Details for a Person who is no longer currently employed by the organisation and a received a Final Pay. (See View Inactive People).
iPayroll: The Internet-based payroll processing service for New Zealand. (See our Home Page).
ir344: The Monthly schedule Amendments form required by Inland Revenue to amend schedules for previous months that have already been sent. (See Tax Overpayments).
ir345: The (bi)-monthly return to Inland Revenue providing details of the tax payments made to Inland Revenue. Also see ir346. (See Tax Remittance).
ir346: For organisations that pay ESCT. The (bi)-monthly return to Inland Revenue providing details of the tax payments made to Inland Revenue. ESCT may be shown on the ir345 from 1-Apr-2008. Also see ir345. (See Tax Remittance).
ir348: The monthly Schedule to Inland Revenue providing details of all employee payments and tax deductions. This can also be filed electronically as an irFile. (See Tax Return).
IRD Number: The Tax Number used by Inland Revenue to uniquely identify every taxpayer. (See Tax Help).
IRD: Inland Revenue is the government department responsible for administering New Zealand's tax system. (See Inland Revenue web site).
irFile: The electronic return to Inland Revenue providing details of all employee payments and tax deductions. This can also be filed on a paper schedule - the ir348 form. (See Tax Return).
Kiosk: The Employee Kiosk allows people to view their own payslips over the Internet. (See Employee Kiosk).
Large Employer: (As defined by Inland Revenue). An organisation that paid over $500,000 in tax payments in the previous tax year. A large organisation makes tax payments bi-monthly. (See Tax Set Up).
Leave Accrual: A calculation performed in every payroll that calculates the proportion of a leave entitlement that is currently due to a person. The entitlement accrues during the year and is given to the person on their leave anniversary. (See Annual Leave Entitlement).
Leave Anniversary: The date when a person is given a leave entitlement.
Leave Balance: The current amount of leave that a person has available to be taken.
Leave Entitlement: A person's allocation of a particular type of leave.
Leave in Lieu: Leave given to a person in Lieu of payment for additional time worked, typically out-of-hours or on a public holiday.
Leave Liability: The outstanding dollar value of some leave. This is the cost to the Organisation of that leave.
Leave Taken: Leave that a person has used.
Leave: An entitlement given to people allowing them to take time off work.
Nett Pay: Gross Pay less Tax Deductions.
Open Payroll: A payroll that is currently being processed. When a payroll is Opened, standard timesheets are copied from personal files into the payroll, and then changes can be made. (See Open a Payroll).
Organisation: The company, organisation, partnership or other entity that employs and pays the people in the payroll. (See Organisation Help).
Pay Day: The date that the payroll payments are available in people's bank accounts. (Also see banking date).
Pay To Date: The last date that timesheets are filled in to. Sometimes called the "period end date".
PAYE: Income tax for salary and wage earners that is deducted by the organisation each payroll and paid to Inland Revenue as part of the Tax Payment. (See PAYE Help).
PAYE Intermediary: A PAYE intermediary can be a payroll service provider, accountant or other tax professional who provides payroll services and is registered as an intermediary with Inland Revenue. (See Tax Options).
Payment: Money paid to a person, part of their Gross Pay.
Payroll Letter of Credit: An agreement between the Organisation and its bank guaranteeing that payroll funds will be available for direct debiting under the Direct Debit Authority.
Payroll: A payroll is collection of timesheets with the same banking date. (See Processing a Payroll).
Payslip: Advice to a person providing a summary of their Payments, Deductions and other information for a pay period.
Person: An employee, contractor, staff member, director or other entity that receives payroll payments. (See Managing People).
Personal File: The details stored about a person within iPayroll. (See All People).
Report: Summary information that can be printed, downloaded into Excel or viewed. (See Reporting).
Small Employer: (As defined by Inland Revenue). An organisation that paid less than $100,000 in tax payments in the previous tax year. A small organisation makes tax payments monthly. (See Tax Set Up).
SLD: Student Loan Deductions are loan repayments made to Inland Revenue by people who borrowed money to pay for their tertiary education. The repayments are on included in the Tax Remittance and Tax Schedule. (See SLD Help).
Special Element: An element specific to a particular organisation, as opposed to a Standard Element.
Standard Element: An element that is set up and maintained by iPayroll and is common to all organisations.; An element set up across all organisations, and maintained by iPayroll, as opposed to a Special Element. (See Standard Elements).
Standard Timesheet: The regular/recurring transactions that are stored in a person's Personal details and copied into every payroll. (See Standard Timesheets).
Superannuation Deduction: A deduction from a person's pay that is paid into a superannuation scheme. Also refer to Superannuation Subsidy. (See Deduction Set Up).
Superannuation Subsidy: A benefit, separate to a person's Gross Pay, that is paid by the into a superannuation scheme. (See Superannuation Subsidy).
Take Home Pay: Gross pay less all deductions.
Tax Arrears: Outstanding money owed by a person to Inland Revenue. (See Tax Arrears Help).
Tax Code: A code that determines what and how much tax is deducted.
Tax Deduction: A deduction made to Inland Revenue. This includes PAYE, SLD, CSD and WT.
Tax Payment: Tax money paid to Inland Revenue, (as supported by a Tax Remittance.
Tax Remittance: A schedule providing details of a tax payment to Inland Revenue. Printed on an IR 345 or IR 346 form.
Tax Schedule: A monthly return to Inland Revenue providing details on individual person's tax deductions. Either printed on an IR 348 schedule or submitted as an ir-File.
Timesheet: the collection of individual payroll transactions for a person that determines the payments and deductions to be made.
Transaction: An individual entry on a timesheet that describes the quantity, element, cost centre, rate and amount to be paid or deducted.
User Defined Field: An optional feature that lets you choose your own user defined sort field for your people. (See How to Set Up User Defined Fields).
WT: Withholding tax is deducted from payments to people who are not employees but work for the organisation on a contract-for-services basis. (See Withholding Tax Help).

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