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This section notes the differences for New Zealand users from the standard setups described in Setting up and administering Attaché Payroll.


 

Initial setup options

As noted in Initial setup options the Payroll Options screens vary depending on the country you choose. For New Zealand, the 'Tax Details' screen looks as shown in the following screenshot.

 


Payroll Options – Tax Details screen (Note that the values shown above are samples only. The specific values for these fields change each tax year as per IRD requirements.

Setting up income types

See Setting up income types for detailed instructions.

Note: The data shipped with Attaché Payroll contains income types that you can use with minimal modification. (If your payroll is typical, you need to modify just the General Ledger account codes.)

 
This table shows special considerations for New Zealand payrolls when setting up incomes types.

FieldDescription
Allow Date EntrySet to Yes for the following types of leave: annual, sick, leave without pay, statutory holiday worked, bereavement. Doing so is optional for other income types.
Use NZ Holiday RateTo comply with the Holidays Act 2003, set to Yes for income type HOL and HOLEX only
Use Extra Pay Rate

This check box is specific to New Zealand. Select this check box if you wish to use the Extra Pay tax rate (as specified on the employee standard pay or time sheet) to tax this income type.

This should be used for Holiday Pay on termination, Annual Leave cash out, Annual Leave in advance of the current pay period, Payment for an Alternate holiday when the Alternate holiday is not taken and any other income that needs to be taxed at an Extra Pay rate (rather than being included in normal PAYE calculations).


This table lists typical uses for income categories (where the use is different from the name of the income category).

Income categoryUse for
Normal HoursNormal, standard, salary, work without pay, statutory holidays
OvertimeOvertime, call-outs
RDO (Rostered Days Off)Ignore – RDO is not common in New Zealand
Study LeaveStudy leave taken, or parental leave
Workers CompensationACC first week and reimbursements
Public HolidaysStatutory holidays alternative required in lieu, statutory hours worked
Flexi-TimeTime in lieu credits and taken
User Defined 1Alternative holiday (statutory holiday alternative accrued and taken)
User Defined 2Other leave (bereavement leave)

Setting up allowances, deductions and employer contributions

See Setting up pay elements for detailed instructions.

This table shows uses for allowances and deductions and how to set them up appropriately.

Use forSet up as
Back payValue
CommissionsValue or Percent of Value, as not hours-based
Garnishes, such as Department of JusticeValue or Percent of Value, not hours-based
Employee superannuationPercent of Value or % of Calculated
NZ child supportChild Support (NZ), which limits the amount deducted to be a maximum of 40% of tax-paid income
NZ tax arrearsTax Arrears (NZ), which limits the amount deducted to be a maximum of 10% of gross income
RedundancyNZ Extra Emolument without EL
Holiday payout at terminationNZ Holiday Termination, to calculate 8% of current year's gross relevant earnings. All taxable income and allowances not defined as an extra emolument (such as bonus and redundancy) are accumulated for GRE. This allowance type should be used only for termination payouts and first-year payouts for an annual shutdown
Annual leave 8% as you goAnnual leave 8% as you go Paid out as 8% of gross taxable for casuals. Must show separately on a pay advice. (The employee gets no accrual entitlements)

Choosing a calculation method

See Choosing a calculation method for detailed instructions.

For all permanent employees, calculation by date is required by the current legislation.

Setting up or modifying a leave table

See How to set up or modify a leave table for detailed instructions.

Annual leave

By default, the annual leave income type in Attaché Payroll is paid at the higher of average or ordinary rates, when calculated on a HOL table, but can be changed on a time sheet.
For employees always paid at 8% each pay, set NIL as the table to use (as there are no days' accrual).
For casuals who work varied weekly hours in any given period, accumulate holidays based on hours worked (for example 0.08 hours per 1.00 hour worked).

Attaché Payroll contains the following leave tables for annual leave.

Leave Accrual CodeDescription
HOL/HOL1Calculated on 12-month anniversary, 15/20 days per year, shown as "days" on leave, and allows for advance leave. Best code to use for permanent staff
HOL2Calculated on 12-month anniversary, 15 days per year, shown as "days" on leave, but does not allow for advance leave. Use if your company does not want leave to be viewed on a pro-rata basis from the current year entitlement
AL/AL1Calculated on 12-month anniversary, 15/20 days per year, but shown as "hours" entitlement on leave, and allows for advance leave. That is, same as HOL/HOL1, but shown as 120 hours for a standard 8-hour day and 5- day week
AL2Calculated on hours worked, 15 days per year, shown as "days" on leave, accumulated on "types" of hours. Modify this table if there is a case where some work or leave is not applicable for holiday pay
ALCASU

Accrues 3/52 of hours worked each year. Use for employees with no fixed hours of work each week

Last Entitlement Date for Christmas shutdown

In the event of a Christmas shutdown, you need to pay out the 8% entitlement in the employee's first part year as consideration for the time covered by the shutdown period. The employee will then start the entitlement for the following year from this date.

Attaché Software recommends that the shutdown date be set to coincide with the end of a pay period, and be at least the pay period before leave is taken to allow pro-rata leave to become entitled leave.

For example, suppose a factory closes on 24th December and the previous pay period ends on 17th December. Set the shutdown date to 17th December to entitle the leave, and then pay out in the pay period of 24th December.

To help make this a simple task, use the Leave Liability report to award the hours of pro-rata leave that have been accumulated from the start date until shutdown, which, as normal annual leave, will pay at the higher of the average or ordinary rate.

Enter the last shutdown date as the Last Entitlement Date when setting up the employee, but the Leave Start Date should stay as the employee's start date.

For example, an employee joins a company on 1/9/2007 and there is a shutdown from 23/12/2007 for 3 weeks. The employee gets paid out the pro-rata leave value equivalent to the 8% calculation, and then accrues actual holidays between 23/12/2007 and 23/12/2004. The Last Entitlement Date would be 23/12/2006 when setting up the employee.

Sick Leave

This table shows the values of important fields for setting up an income type for sick leave.
By default, sick leave is paid at the standard rate but the rate can be changed on time sheets.

FieldValue for sick leave
EntitlementTypically 5 days
Calculate byDate
Accrue in AdvanceYes
Reset Entitlement TypeThe Holidays Act 2003 stipulates No Reset with Maximum Leave of 20 days
Minimum Service Period6 months (or contract number of months before eligibility)
Entitlement after Minimum Service10 days allocated for the rest of the year

Bereavement Leave

This table below shows the values of important fields for setting up an income type for bereavement leave.
By default, bereavement leave is paid at the standard rate but the rate can be changed on time sheets.

FieldValue for bereavement leave
EntitlementTypically 1 to 3 days per death
Calculate byDate
Accrue in AdvanceNo
Reset Entitlement TypeThe Holidays Act 2003 stipulates Reset to Zero with no Maximum Leave as it is paid out per death
Minimum Service Period6 months (or contract number of months before eligibility)
Entitlement after Minimum Service0

Alternative holiday leave

This table shows the values of important fields for setting up alternative holiday leave, such as income type STATLIEU.

FieldValue for alternative holiday leave
Entitlement1 day (accrued for 1 day of normal statutory leave)
Calculate byHour
Accrue in AdvanceNo
Reset Entitlement TypeYes
Public Holidays (on second screen)Yes
Entitlement Received onCompletion of Entitlement Period


Attaché Payroll contains the following income types for statutory and alternative holiday leave.

Income Type CodeUse for
STATPublic holidays, for workers who do not work that day. By default, this is paid at the normal standard rate but can be changed on a time sheet
STATWORKWorkers who work or are on call on a public holiday. Use this code (instead of STAT) for the number of hours worked (to pay at 1.5 times the rate)
STATALT Enter on a time sheet the balance of the hours worked to make the standard hours per day. For example, 5 hours STATWORK plus 3 hours STATALT (to make the 8 hours required) tells the system to accrue an alternative day of holiday
STATLIEUWhen an employee takes the alternative holiday, enter the number of normal hours worked in an ordinary day


REF: 260621  

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