1. Payroll is always the last to know

When recruitment, HR and payroll sit in different departments, or the locations are remote and in a different office, lines of communication can be fractured, and payroll is not aware of the new hire until the employee asks why they haven’t been paid.

With recruitment, HR records, and payroll in one system, when the recruitment manager hits the HIRE button in the recruitment module, the new employees’ details are added to the HR record in Dayforce and a notification of the new hire is sent to all departments that need to know, such as payroll, IT and the employee’s manager.

2. Global Locations

As is often the case with New Zealand companies, especially multinationals, the head office is in another country, and in some cases, the employees’ reporting manager is also in another region. 

Dayforce is a truly global system meaning that an employee in New Zealand can be managed by a manager in another country. An employee can even have more than one manager, perhaps one based in the location in which they work and one based offshore. These management assignments can also be swapped out if reporting lines change.

3. Smart Onboarding

Nothing is more welcoming to a new employee than a robust onboarding experience but this is an area that often gets neglected and a new employee arrives when no one is expecting them, there is no place for them to work, and no buddy to tell them where things are and what they will be doing.

Dayforce has an onboarding module that can be configured to suit the role as well as the location.  And it introduces a new employee to their buddy who will be their go-to in the first few days of employment.  Onboarding can also provide a guided introduction to the company including employment forms and policy documents all in one place.

4. Multiple Roles

Some HR and payroll systems can’t handle employees who work in more than one role in more than one department/location. Dayforce has the ability to assign employees to multiple roles in multiple locations at different pay rates.

5. Continuous Payroll

Most payroll cycles have a definitive start period, usually after the pay period has ended. For example, the pay period ends on Sunday and the pay is due on Tuesday.  Payroll can’t start processing payroll until Monday which results in a large volume of work in a short space of time.

Dayforce payroll can be initiated at any time in the pay cycle and can even be initiated in advance. Continuous payroll means that payroll personnel have the time to amend pay calculations and check the result in real time well ahead of the pay run deadline. This creates efficiency and accuracy in the scheduled pay run resulting in fewer out of cycle pay runs.

6. Messaging

Communications with employees can be a hit or miss affair with conventional methods such as a companywide email to a wide audience that could end up in junk/spam inboxes and not be read or is irrelevant to a certain group of employees. Dayforce includes an integrated messaging system that functions like an email inbox, allowing messages to be customized for specific groups of recipients—such as employees in a particular location, department, pay group, or role.

Employees can also use the Message Centre to communicate with one another, providing a messaging option for those without a dedicated inbox. This is especially useful for casual or fixed-term employees, as it allows them to send and receive messages without the need for a company email account.

7. Hard coded platform that doesn’t allow for customisable features

It is quite common for an HR/payroll system to be inflexible to the company’s requirements and only large-scale corporations can invest in requiring the vendor to create a system that meets their needs.  Smaller companies must deal with the system provided and initiate workarounds. 

The Dayforce system is configurable to the company’s individual requirements as part of the implementation process ensuring that the system meets the specific needs of that company.

8. Multiple systems across multiple platforms that creates errors and inefficiencies

With recruitment in one system, HR in another, time and attendance in another, payroll in another and performance in yet another, it is no wonder data goes missing, is misinterpreted and fails to align. Susan can be Sue on one system and Susie in another.

Dayforce is a fully integrated system for the whole of the life cycle of an employee from recruitment to termination and everything in between. No need to integrate data from one system to the next and losing information along the way.  And goodbye to receiving the dreaded ‘import failed’ message when data doesn’t align.

9. Mobile App

How often have you heard from an employee; I can’t complete my leave request because I don’t have access to my computer? Or I didn’t know I was working that shift?

This is where the Dayforce mobile app comes in. Available in iOS and Android, the app can be used for anything that an employee can do in the browser – apply for leave, check their shifts, message colleagues and even view their payslip. For the Manager, they can approve leave, send notifications and announce available shifts to their team.

10. And last but not least – compliant with New Zealand Holidays Act

Many payroll/time and attendance systems are not compliant with the New Zealand Holidays Act, even systems that are New Zealand based.

Dayforce comes with an out of the box New Zealand Holidays Act configuration that has annual leave in weeks and circumstantial leave, commonly known as FBAPS leave, in days. Dayforce also calculates the OWP/AWE rates for annual leave as well as RDP/ADP rates for circumstantial leave making it compliant with New Zealand legislation.

Payroll processing can’t wait for managers on extended leave to return for approvals. Before your management team heads off on their break, confirm that all necessary payroll approvals are completed or that alternate arrangements are in place.

This avoids bottlenecks and last-minute delays that could impact the timely distribution of payroll, particularly if approvals are needed from multiple departments. As we approach the holiday season, it’s essential for businesses to ensure payroll processes continue smoothly. Whether your business closes or operates through the holiday period, payroll must remain seamless.

Employees still need—and expect—to be paid on time. However, managing payroll over this period can bring specific challenges. Here are ten key considerations for ensuring a smooth payroll operation during the holidays:

1. Confirm Your Closedown Period

If your business has a closedown period, notifying employees in advance is essential. Legally, employees must be informed at least 14 days before a shutdown, but giving earlier notice helps them plan and manage their time off better.

Informing your team well ahead ensures they’re fully prepared and reduces last-minute disruptions to your payroll planning. It also allows employees to clarify any questions about how leave will be handled during the closedown period.

2. Clarify Annual Leave Requirements

If employees are required to take annual leave during the closedown, communicate this clearly, including what happens if they don’t have enough leave available.

Remember, employees are still entitled to paid Public Holidays that fall within their annual leave (as per Section 40 of the Holidays Act 2003). Encouraging employees to plan their leave carefully now will help them avoid surprises and ensure they’re paid appropriately. Early conversations with employees about these details can help smooth any confusion and set clear expectations.

3. Plan for Pay Dates Over Public Holidays

If a Public Holiday lands on a normal pay date, you may need to adjust payroll processing to ensure funds reach employees on time. Although some banks process transactions on Public Holidays, it’s not always reliable.

Adjusting payroll to process earlier, if needed, ensures employees are paid on the expected date, avoiding complications with automatic payments or direct debits. This extra measure reassures employees, keeps trust intact, and prevents any potential holiday-season stress around late payments.

4. Communicate Any Changes to Pay Dates

If payroll dates need to shift due to holiday timing, communicate this to employees well in advance. Employees rely on their wages to arrive on specific dates, so it’s courteous—and practical—to inform them of any changes as soon as possible.

By being proactive with this communication, you’ll avoid a flood of enquiries from staff seeking clarity during an already busy period for your payroll team.

5. Ensure Payroll Approvals Are Handled Before the Holidays

Payroll processing can’t wait for managers on extended leave to return for approvals. Before your management team heads off on their break, confirm that all necessary payroll approvals are completed or that alternate arrangements are in place.

This avoids bottlenecks and last-minute delays that could impact the timely distribution of payroll, particularly if approvals are needed from multiple departments.

6. Check Bank File Approver Availability

Payroll depends on bank file approvers to release payments, so it’s crucial to confirm they’re available during the scheduled payroll period. If pay dates are altered, approvers need to know about these changes to be available on the new dates.

Ensuring they’re prepared and available to approve files on time prevents delays in payroll processing, so employees receive their wages as expected, even during the holidays.

7. Verify Employee Leave Entries Are Up to Date

If your business has a closedown period, check that leave requests have been entered and approved for all affected employees. If there’s no closedown, confirm that leave entries for those taking holiday leave are accurate and complete.

This prevents any last-minute requests that could lead to errors or missing information in payroll processing, keeping everything on schedule. For businesses with high demand during the holiday season, ensure blackout periods are clearly communicated to employees well in advance.

8. Coordinate Operational Coverage and Leave Schedules

During busy holiday periods, coordinating who’s available to work is critical. If multiple staff want the same time off, consider setting a policy—such as rotating holidays or giving preference to employees who didn’t take leave the previous year.

Clear policies about holiday leave expectations create a fair system for everyone and help ensure you have the staff needed to maintain operations. If you require coverage on key days, set these expectations early to avoid disappointment and ensure smooth operations.

9. Prepare for Increased Payroll Workload

Holiday payroll management often brings an increased workload due to Public Holidays, additional annual leave processing, and potential employee turnover. If the holiday season is also your offboarding period, you may face additional pressure calculating termination payments.

Be sure you have enough resources in place to manage this demand. If your payroll team is stretched, consider bringing in temporary support to manage the extra load, so your team doesn’t feel overwhelmed and processing remains smooth.

10. Plan for Payroll Administrator Leave

If your payroll administrator is taking leave, it’s vital to ensure backup support is ready to step in. Payroll is time-sensitive and can’t be delayed, even over the holiday period.

Ensuring adequate coverage for payroll during this period gives your payroll administrator the well-deserved break they need while keeping payroll operations steady. Consider cross-training additional team members if possible, so they’re prepared to manage any payroll-related issues that might arise.

Last year I went to the Secrets of Stonehenge Revealed exhibition and it has inspired this title – Mysteries of Payroll Revealed, because for many people payroll is as much of a mystery as Stonehenge.

Every week/fortnight/month money appears in personal bank accounts and everyone breathes a sigh of relief – bills can be paid, that new outfit can be bought, that dinner date can go ahead.

The biggest sigh of relief comes from the one who have processed that payroll – the payroll administrator/officer/specialist/manager: Another pay run over, xxx number of employees paid, …until the next pay run when it starts all over again.

Let’s explore the day in the life of a payroll administrator. For the purposes of this exercise I have condensed the process into an 8-hour day. While payroll can take more time than this, the steps are often the same.

Minus 8 hours to payroll commit

Check that timesheets are approved. Out of 10 timesheets, 1 is not approved. Send email to manager. Get an out of office: “I’m currently walking Milford Track and have limited access to emails. If your request is urgent, please email…” Try to track down an alternative approver because the suggested email belongs to someone who does not the authority or access to approve the timesheet.

Dayforce Solution:  Managers can delegate authority to another person in their team who can approve timesheet while they are away.  They can also approve leave requests so that these can be included in the pay run.

Minus 7 hours to payroll commit

All timesheets now approved. Download timesheets/leave approvals for upload to payroll software. Upload fails. Refer to IT Support to assistance. It may surprise most people to know that often the schedules/timesheets are held in one application and payroll in another so there is a download/upload required to process payroll.

Dayforce Solution: Dayforce is an integrated system meaning both time and attendance and payroll processing are held in the same system so therefore file downloads/uploads of timesheet and/or leave data is not required.

Minus 6.5 hours to payroll commit

Issue with upload resolved and timesheet/leave approvals uploaded to payroll software.

Minus 6 hours to payroll commit

Manager now remembers that an adjustment needed to be made to someone’s pay/hours/overtime and meant to tell you last week but has just remembered. Could this be done this pay? Unlock timesheets so that manager can add hours/overtime, wait for approval, lock timesheet again. As upload has already been done and can’t be uploaded again, add the adjustment manually to correspond to the timesheet entry.

Dayforce Solution: If a last-minute adjustment to a timesheet needs to be done, the payroll admin can unlock the timesheet, the manager makes and approves the adjustment and the timesheet can be locked again. The payroll admin then needs to do is recalculate the pay run for the adjustment to be included in payroll.

Minus 5.5 hours to payroll commit

Run payroll in the system. Very often this is not just a matter of pressing a button, but having to go through a series of steps as the payroll system takes the payroll data such as rate of pay, hours worked, overtime, leave etc, draws that into the payroll system, matches up the days/hours worked then works out tax rate and superannuation etc according to the settings in payroll.

Dayforce Solution: What makes Dayforce payroll unique in the payroll workspace is that a pay run can be opened and calculated at any time in the pay period and can be checked for anomalies continuously throughout this period. This means that errors can be fixed ahead of time which allows in-depth analysing, reviewing and correcting pay data prior to pay period end.

Minus 5 hours to payroll commit

Software system throws up a calculation error – something is not matching up in the system. Investigate and attempt to discover what this is and fix the system. Log a ticket with Support.

Dayforce Solution: Dayforce has dedicated payroll support 24/7 that allows system errors to be logged as a Severity 1 Case. This is reserved for genuine emergencies where an issue is impacting payroll commit. This service “follows the sun”, that is, the support team is world-wide so the ticket will be attended to in real time, without waiting for a support team in another region to arrive at work. So applicable to New Zealand which can be as much as a day ahead of other regions.

Minus 4.5 hours to payroll commit

Run payroll reports. In most systems this also includes a report to compare the last pay run to current pay to identify where a particular pay may be over/under. This works well for normal Monday to Friday 8 hours a day, 40 hours a week staff but a little trickier for those with variable hours. Unpaid leave can also skew a regular pay as well as extra hours worked. Find and correct any discrepancies. This can be the most labour-intensive part of payroll.

Dayforce Solution: Dayforce has several audit tools within the payroll module which allows checking according to several parameters, such as gross pay comparison to last gross pay, audit summary whereby individual earnings, deductions, tax etc can be reviewed, as well as summary audits. And, as per the point above, this can be done at any time ahead of the pay period end date to identify discrepancies and errors well ahead of pay date.

Minus 3 hours to payroll commit

Send payroll reports to payroll authoriser to be checked and approved.

Minus 2.5 hours to payroll commit

Approver has query on some employees’ earnings and/or deductions of the payroll report. Investigate and report back.

Dayforce Solution: Within the payroll module, payroll admins can filter on an individual employee and view their actual payslip in a fly-out screen. This fly-out also has additional tabs such as timesheet, time data and GL preview (if configured). This makes investigating and reporting on elements of an employee’s pay fast and an explanation provided timeously so that the authoriser can proceed. 

Minus 2 hours to payroll commit

Payroll approved. Next step is to create the bank file to upload to the bank so that staff can be paid. File downloaded and uploaded to the bank. Bank returns an error message – a bank account number is incorrect. Delete upload and track down the bank account causing the issue, go through employee records, find the bank account on file and compare. Amend bank account and attempt to upload file again. Note that in some software programs, you must reprocess the pay run again for the bank file to download with the new bank account. This is a security feature but takes up time.

Dayforce Solution: The bank file is created as soon as the pay run is committed. If a bank number is incorrect, this can be corrected in employee’s records and the bank file generated again without having to reprocess the pay run.

Minus 1 hour to payroll commit

Send message to bank file approvers to authorise the payment files in the bank. Follow up with approvers. Breathe sign of relief when this is done.

Zero hour – payroll committed

Post Payroll

Send out payslips and print/download payroll reports. Upload payroll journals to accounting system.

Dayforce Solution: While providing a payslip is not a legal requirement in New Zealand, it is best practice to do so. Dayforce produces payslips as an Earnings Statement which are added to an employee’s record and are available within Dayforce for the employee to log in and view. 

Furthermore, these earning statements are stored in one area of the employee’s record so that they access not just the current payslip but also previous payslips. Payroll reports run automatically on payroll commit so are available to download from Archived Reports within the pay run. And if the GL export has been enabled, this is also available either as an archived report or as a file transfer to a SFTP system such as Filezilla.

Plus 1 hour after payroll commit

Employee sends email; “My pay is wrong, you didn’t pay me for…”

Dayforce Solution: While errors in payroll can always occur, especially as payroll personnel tends to be the last to know, as Dayforce is an integrated system the possibility of persistent errors is reduced. The HR record within Dayforce holds all compensation data such as employee’s salary, days and hours worked, entitlement policy, pay policy and payroll policy. 

The payroll elections feature holds regular earnings such as allowances, as well as regular deductions. The Time Away From Work module holds leave information and feeds approved leave directly into the employee timesheet.

All these elements are loaded into the pay run once it is opened and calculated. An amendment made to any of these elements can be calculated and viewed at any time in the pay period to ensure that the pay is correct. Mistakes happen but with all these elements embedded in the one system, there is less chance of a mistake occurring.

And a mistake-free pay run makes for happy employees 😊

With a vision to strengthen their HR recruitment systems and employee experience, Sky New Zealand engaged ELMO, a HR and payroll solution provider, to strengthen their talent acquisition capabilities, remuneration, performance management and succession in addition to refining their financial control systems.

Once the implementation got underway, complexities of the project came to light as the scope expanded, and feedback from the payroll team indicated unanticipated challenges mixing their new HR solution with their current payroll provider, PayGlobal during transition.

Furthermore, the new payroll solution accompanying ELMO HR, brought with it some challenges of its own.

To minimise the risks, they brought Alxemy onboard to support the implementation project and bolster Sky TV’s internal resources, affording them the ability to manage both BAU as well as the implementation project.

Alxemy proved a perfect payroll partner for Sky New Zealand – and continue to be – because they:

• Have extensive project management skills and expertise industry wide.
• Have the ability to work through and around the complexities of a large enterprise level system integration project, streamlining HR and payroll processes.
• Could advocate for Sky New Zealand and develop a new business continuity plan to future-proof Sky’s payroll processes.

The project’s end result? Sky New Zealand now have their HR and payroll systems collaborating seamlessly with one another, and have cemented an ongoing relationship with Alxemy.

A solution that ticks all the boxes

Sky New Zealand has a head count of over 600 people. As a national broadcaster, providing media services countrywide, and employing a range of full time & part time staff and contractors, having a centralised, efficient, and compliant HR and payroll platform in place was a must.

With a robust solution they would be able to attract talent, manage workflows more efficiently and meet the needs of their people, all the while simplifying HR & payroll processes across the board.

Knowing this, Sky New Zealand went out to market to find a solution that met all their requirements. After an in-depth selection process, they chose ELMO as a full end to end solution in HR.

Seeking a trusted hand

As can be the case, with enterprise level system implementation projects, there can be unexpected complexities along the way. These complexities can become amplified and extensive when you add the integration of multiple systems to the scope.

As can be the case, with enterprise level system implementation projects, there can be unexpected complexities along the way. These complexities can become amplified and extensive when you add the integration of multiple systems to the scope.

Alxemy steps in as Sky’s payroll partner

Because of their strong reputation, Sky’s Head of People Operations Property & Safety, Alex Howieson, reached out to the team at Alxemy for payroll support.

Working in tandem with Sky’s Payroll Manager Anu Balasooriya, Alxemy and Sky worked closely with the team, actioning agreement requirements and adjustments in accordance with Sky’s business processes.

Over several months the Alxemy team implemented and executed systematic manual workarounds to address any calculations and processes for which the system did not cater, and worked internally to assist the payroll team with payroll two-days a fortnight.

As part of the project, Alxemy also assisted with delivering:

• agreement requirements
• reporting for the finance team
• streamlining of all payroll processes
• automation of processes where possible

Alxemy didn’t just sign off on project completion, today they continue to provide payroll support when required.

Future-proofing payroll for Sky

Trust and exceptional service resonated across the project. Sky’s Head of People Operations Property & Safety, Alex Howieson was highly impressed with Alxemy’s professionalism – their service culture an essential key to project success.

“Alxemy went above and beyond the call of duty and superseded our expectations,” says Alex. “Their profound expertise, exceptional organisational qualities continue to serve us beyond implementation. I can’t identify any areas for them to improve upon.”

And the trust and understanding between Sky and Alxemy has expanded beyond individuals to a companywide relationship.

“We now have streamlined processes, a business continuity plan, and Alxemy are helping us two-days every fortnight which means our payroll manager now has the ability and confidence to take time off. We’re in a safe pair of hands.”

Conclusion

Sky New Zealand now benefits from a robust, streamlined, and compliant HR and payroll system, with Alxemy continuing to provide invaluable support. This partnership not only resolved immediate challenges but also equipped Sky with the tools and systems needed for long-term success.

End-of-year tax 2024 is knocking on the door. So, equipping yourself with a summary of the changes occurring from 1 April 2024 is essential for ensuring your ducks are in a row and you have peace-of-mind going forward.

These changes apply for the first pay cycle with a pay date that falls on or after April 1. In a nutshell, what this means is you could have a period ending 31 March 2024 with a pay date of 3 April and this will already form part of the 2025 tax year.

ACC Earner Levy Threshold

• On the ACC front, the ACC Maximum earnings threshold has increased from $139,384 to $142,283.
• The ACC Earner Levy has increased from 1.53% to 1.60%.
• The maximum ACC Earner Levy payable is $2,276.52 annually.

PAYE Rates and Thresholds

Tax thresholds are changing, but not yet. Even though the new government’s policy is to increase the tax thresholds, so employees can expect a reduction in the tax they pay, this won’t kick into effect until June 2024. So, as it stands, there are no changes to tax thresholds or tax codes on 1 April 2024.

Student Loan Repayment Rates and Threshold

No major shift in the student loan department. Student Loan threshold values apply from 1 April 2024, with the rate remaining at 12%: 

Minimum Wage

The minimum wage is on the rise, with increases effective 1 April 2024. 

Keep in Mind . . .

As the Tax Year End 2024 fast approaches, stay abreast of these important things . . .

• Ensure your software is updated, you have tested any changes and it’s ready to roll for the first pay cycle in the new tax year.
• Take time to reconcile your payroll reports for the year, and survey what has been reported and paid to the IRD.
• Make sure your new processing calendar and holidays have been loaded. Typically, cloud-based software vendors automate this for you but don’t assume and then find yourself on the back foot.
• If you have employees who are on special tax codes, make sure you have their new certificates on hand.
• ESCT rates are recalculated at this time of the year for employees based on the taxable earnings + employer Kiwisaver contributions for the previous year. Double check your payroll system has done this correctly.
• Ensure all employees are being paid the new minimum wage or higher.

If you have any pay or tax related questions as we step into this busy time of year, reach out to our team for advice and assistance.