Final Pays

Final Pay Payrolls

Final pays are always processed in a payroll, just like any other payments. Depending on when the person is finishing, you have several options.

• If the final pay is to be made on the same pay day as your normal payroll, include the final pay with your usual payroll.
• If the final pay is to be made after your normal pay day, process and confirm your normal payroll as usual. Then open an one-off payroll to calculate the final pay.
• If the final pay is to be made before your normal pay day, and you haven't started your normal payroll, open an one-off payroll to calculate the final pay. Then you can process and confirm your normal payroll as usual.
• If you have a "sudden" termination, and you have to make up a final pay, but are in the middle of processing your normal payroll for a later payday, you will have to do a manual payment.
  1. Process the person's final pay within the normal payroll you are working on.
  2. Change the person's remaining pay transaction (the very last entry on their timesheet) to CHEQUE. (This will remove the person's pay from the banking schedules, ensuring that the person isn't paid this amount in the normal banking).
  3. Manually pay the person their final pay, either via a cheque or by transferring the money into their bank account yourself (i.e. not through our services).

Reinstating a Person

A person who has not finished, or has returned to work can be reinstated.

1. Go to the Person's "Reinstate" tab, within the People Menu, and press the "Reinstate Person" button.
2. Review the Person's Personal Details page, updating information as required.
   (e.g. the person may now have a different bank account, if they left some time ago).
3. Review the Person's Leave Balances page.

Minimum Wage

For Tax Year: 2012/2013 2011/2012 2010/2011 2009/2010

New Person

To Add a new Person select the People link at the top of the screen and press the Add a new Person button.

You can read all about setting up people in our guide to setting up your own payroll.

Additional information is available at:-

• Maintaining Personal Details
• Personal Details Form
• Pay Rates
• Tax Information
• Setting Up Leave
• Standard Timesheets
• Standard Timesheet Form

- The Internet Payroll Service for New Zealand

Up | Home

---

Personal Details

The Personal Details page for a person contains basic personal and payroll information about a person. Enter the relevant information and press the 'Save Personal details' button at the bottom of the page to save your changes.

First Name(s)	Enter the person's First Name, or Names. Enter a preferred name or nickname in brackets, for example 'William (Bill)'. You can sort on this name when viewing personal files, and it may be used in mail merges.
Surname	Enter the person's Surname (or family name).
Address	Enter the person's address for contact purposes. This is displayed on their payslip.
eMail	Enter the person's eMail address. After saving an eMail address for a person you can click on the eMail link to send that person an email.
Phone Number	Enter the person's Phone Number. This is used in the Staff Phone List.
Gender	Enter their gender. This is used in the Quarterly Employment Survey.
Proprietor	Tick this box if the person is a proprietor of this organisation. This is also used in the Quarterly Employment Survey.
Job Tile	Enter their job title (e.g. this is what would be displayed on their business card).
Start Date	Enter their Start Date (e.g. 5-Dec-2000). This is used to calculate their length of service, and is important for leave calculations.
Finish Date	If the person has finished, their finish date will be displayed. You can read more about finishing a person.
Workplace	This is your User Defined Field, which you can select from the drop-down list.
Pay Method	Select how the person is paid (usually Bank - via direct credit into a nominated Bank Account, but can also be via Cheque or Cash). Note: Select the option for the persons remaining pay here, even if they have a fixed amount going to a nominated Bank Account. Fixed amount deductions to a Bank Account are set up using a PBA - Personal Bank Account deduction on the persons Timesheet Template The regular/recurring transactions that are stored in a person's Personal details and copied into every payroll. (See Timesheet Templates). .
Bank Account	Enter the Bank Account that this person receives their pay into. (You can leave this blank if the person's Payment Method is Cash or Cheque).
Paid Up To	This displays the date the person has been paid up to, and is updated each time a payroll is closed, according to the dates on the Open Payroll page. You can also select the Paid Up To: link to change a person's paid up to date. This is useful for advances or leave without pay.
Pay Rates	Enter the person's pay rates here. (Usually just enter Pay Rate and Full Time Hours). You can read more about Pay Rates.
Tax Information	Enter the person's tax information here. (Usually just select the Pay Frequency, Tax Code and IRD Number-e.g. 49-091-850). You can read more about Tax.
Pay Frequency	Note: The "Weekly (2)", etc. pay frequencies may be used if you have groups of people paid on the same frequency but paid at different times or with different paid-to dates. For example, use "Fortnightly" and "Fortnightly (2)" if people are paid fortnightly, half paid each week.
KiwiSaver	Enter the person's Employee deduction and Employer contribution rates. Also record when the person Opted Out, and if they were a PreExisting Member of KiwiSaver when they started working for your organisation. You can read more about KiwiSaver.
Timesheet Notes	You can enter anything you like here. These notes are also displayed when you are entering timesheets for a person and a useful place to record reminders, e.g. that a person is due a pay increase on a certain date.
More Notes	Follow the link to display the Notes page where you can enter additional notes for a person. Note: These notes can be used for anything you like, for example performance reviews, next of kin contact details, medical notes or training courses completed.

Amendments Form

Print this Form

Angling Adventures (Demo)
Amendments Form

Name	Employee ID	Item to Change	Change From	Change To

KiwiSaver

New People / Automatic Enrolment

A new person is automatically enrolled in KiwiSaver (2.0% by default with 2.0% employer contribution).

• To change a person's deduction and/or contribution rate enter the percentages into the Employee and/or Employer fields on their Personal Details page.
• If the person should not be automatically enrolled, enter 0% into those two fields. Inland Revenue has a page detailing who is exempt from auto-enrolment.
• Record if the new person was a PreExisting Member of KiwiSaver when they started with your organisation.

Information entered into these fields will automatically update the appropriate transactions on the person's Standard Timesheet.

KiwiSaver Deduction Rates

  (KS 2 form)

To change the deduction and/or contribution rate for a person enter the appropriate values into the Employee and/or Employer fields on their Personal Details page. This will update the appropriate transactions on their Standard Timesheet.

Note: KiwiSaver members must contribute 2%, 4% or 8%.

Contributions Holiday

  (KS 6 form)

To record a contributions holiday, enter 0% into the Employee and Employer fields on their Personal details page. This will remove the KiwiSaver transactions from their Standard Timesheet.

Note: When you are advised that a person's contribution Holiday is ending you can re-enter the appropriate percentages to restart KiwiSaver.

Opt Out Requests

  (KS 10 form)

To record that a person is opting out from KiwiSaver, enter the Opted Out date on their Personal Details page. This will automatically remove their Employee and Employer rates and remove the corresponding KiwiSaver transactions from their Standard Timesheet.

Note: People can't opt out in the first 2 weeks of starting a new job.

Reporting to Inland Revenue

iPayroll^® will pass all relevant payments and details onto Inland Revenue for you.

Leave Request Form

Print this Form

Leave Request

Angling Adventures (Demo)

Name:
Title:
Type of Leave:	Annual Leave / Sick Leave / Lieu Leave / Alternative Holiday / Bereavement Leave / Other Leave
Requested From:		To:
Total Number of Working Days:
Signed:
Date:
Approved:	Approved / Not Approved
Signed:
Date:

Pay Rates

People can have a variety of pay rates, which provide several methods to correctly calculate their pay. For example, MATTHEWS, John William in Angling Adventures (Demo) has these pay rates:-

(Press the 'More >>' button to see additional rates).

Hourly Rates / Wages

People are paid their Ordinary Time using their hourly rate. (using T1 - Ordinary Time). This calculates the payment by multiplying the hours entered on a timesheet transaction by the persons Hourly Rate.

Note: Everyone is paid based on a number of hours, even salaried staff. (The number of hours are required for costing reports and leave calculations).

Monthly Pays

People on a monthly pay are typically paid the same each month, even though some months have more working days in them than others.

• For a 40 hour week, enter 173.33 hours.
• For a 37.5 hour week enter 162.5 hours.

These can be set up against a persons Timesheet Template.

For people who are paid on the basis of their actual hours worked in the month, work out the actual number of hours to pay and enter that on the persons timesheet.

Part-Time or Casual People

Part-Time and Casual people are paid in exactly the same way as full timers. The only difference is the number of hours entered on the timesheet transaction.

Part-Time or Casual Salaried Staff

Sometimes part time or casual staff are employed on a contract specifying an annual salary. Set up these staff by recording the Full Time Equivalent Annual Salary and the Full Time Hours per Week against the person.

To pay their salary record the number of hours to pay and a T1 - Ordinary Time Payment.

Overtime T1.5 and T2

Time-and-a-Half and Double-Time are calculated in exactly the same way as Ordinary Time, except that the amount is multiplied by 1.5 or 2 respectively.

Fixed Rate Overtime

Some employment contracts specify a fixed overtime rate. This rate can be recorded in a persons Rate 2 field. Then to pay overtime at this fixed rate record the number of hours worked on a timesheet transaction and select Payment R2 - Overtime (Rate 2). This calculates the amount as the Hours entered multiplied by the persons Rate 2. Note that the R2 payment is reported as an Overtime payment.

Multiple Pay Rates

Some employment contracts specify different rates of pay for different work. There are two ways to calculate these payments:-

1. Record each pay rate against a persons Rate 2, Rate 3, Rate 4 and/or Rate 5 fields.
2. Add a Payment for each different pay rate.

Adding new Payments for different Pay Rates

We have set up standard payment codes that you can enter on timesheets to use Rate 2. (See payments J2 - Second Job and R2 - Overtime (Rate 2) ). To use other rates, you will have to set up a special payment to calculate using the appropriate rate - follow a similar set up to J2 or R2.

Multiple Jobs

People may be employed to perform two or more jobs, and be paid different rates for each job. To calculate these payments record the pay rate for the 'main' job against the persons Pay Rate. For the second job use Rate 2, and so on.

To calculate a payment for a persons second job use Payment J2 - Second Job. This calculates the amount by multiplying the hours by the persons Rate 2. Note that the J2 payment is reported as an Ordinary Time payment.

Piece Work

Some people are employed on a 'piece work' basis, e.g. they are paid based on the number of items manufactured rather than an hourly wage.

These people won't have any hours on their Timesheet Template. They will have some form of 'Piece Work' payment entered each pay day on their timesheet.

To calculate and pay piece work, you must set up a special payment. Set the Calculation Rule to "Use Rate Amount from Payment Details", and the Rate Amount to the piece work rate per item.

Then, to make Piece work payments to a person, enter the number of items in the Quantity field on a timesheet and select your piece work payment from the drop-down list.

Personal Details Form

Print this Form

Std Timesheet Form

Print this Form

Angling Adventures (Demo)

Standard Hours

Standard Hours per Pay

or

Timesheet required

Code / Description	Hours per Pay	Cost Centre
T1 - Ordinary Time

Standard Allowances

Code / Description	Amount

Standard Deductions and Superannuation

Code / Description	Amount	Balance O/S	Reference

Additional Personal Bank Accounts

Code	Amount	Bank Account	Particulars	Reference	Code
PBA
PBA
PBA
PBA

Leave Entitlement

Note: Enter Leave entitlements here. Balances to be reported separately.

Leave Type	Days Entitled
Annual Leave		or	Casual Holiday Pay - 8% per pay (HP8)
Sick Leave

Notes

Taxation

People can have a variety of tax codes and special overrides, which provide several options to correctly calculate their tax. For example, see MATTHEWS, John William in Angling Adventures (Demo) (Scroll down and press the 'More >>' button to see additional tax fields).

Usually only the Tax Code, IRD Number and Pay Frequency are entered. Select the appropriate Tax Code and Pay Frequency from the drop down lists and type in the persons IRD Number.

Note: IRD Numbers have a built-in check digit. If you enter an invalid IRD Number you will receive an error message. Either enter the correct IRD Number or change the persons Tax Code to ND (No Declaration).

Special Tax Codes (IR23)

If a person has a Special Tax Code, press the 'More >>' button and enter the appropriate details into the Special Tax %, Special Student Loan % and / or the Special Earner Premium %.

You should not enter any of these Special Tax details unless the person provides a Special Tax Certificate letter from Inland Revenue. That letter will contain the appropriate details.

The person will usually have a Tax Code of "STC" if they have a special tax certificate (the main exception is people are paying SLD - Student Loan Deduction at a special rate).

Special Tax Codes AND Student Loans

If a person has a special tax code for PAYE and a Student Loan, follow these steps:-

1. Enter the Tax Code as STC and the Special Tax Rate(s) as advised on the IR23 form.
2. Enter a SLD - Student Loan Deduction transaction onto the person's Timesheet Template.

Note: This applies regardless of whether the person has a standard Student Loan deduction, or a special percentage / rate for their Student Loan.

School Students

Select the None Tax Code. See PAYE Help.

Withholding Tax

Select the WT Tax Code and enter a Special Tax %. See PAYE Help.

GST Registered

Select the None tax code. See GST Help.

PAYE Tables

PAYE Tables are available from Inland Revenue:

• Weekly and fortnightly (IR 340) - April 2005
• Four weekly and monthly (IR 341) - April 2005

Contractors

Contractors may be on Withholding Tax, be GST Registered, or even have PAYE deducted depending on the circumstances. Refer to the appropriate section on this page for details. IRD has some information on Classifying employees and self-employed.

---

- The Internet Payroll Service for New Zealand

Up | Home

Setting up Leave

Note: If you are not familiar with how we manage leave, please read our Leave Overview first.

To Set Up Leave for a Person:-

1. Add a new Person.
2. Check the Leave Entitlement transactions on their Timesheet Template, changing them as necessary.
3. Check the person's Standard Hours, if they are accruing leave based on that figure.
4. Enter any Opening Balances for Annual, Sick, and any other leave types you maintain. (not usually required, unless you are setting up your organisation).
5. Check the person's Leave Balances.

Leave Set Up Tips

• You can easily set up leave for a person after paying them a few times. This makes it easy to get your payroll up and running without having to worry about leave.
• You should set up leave for a person before recording any annual leave taken. If you don't, you may find that annual leave average payments were due, and it may be confusing to set up the correct opening balances.

---

- The Internet Payroll Service for New Zealand

Up | Home