As it is #globalpayrollweek we thought we would create a list of questions you could (should) ask a vendor when considering a new payroll.
As a business owner in New Zealand, one of the most important tasks you'll need to manage is payroll. Payroll is not only a legal requirement, but it's also essential for keeping your employees satisfied and motivated. With so many payroll systems available on the market, choosing the right one can be daunting. You need a system that is reliable, secure, and compliant with New Zealand employment and tax legislation. To help you make an informed decision, we've compiled a list of critical questions to ask vendors when selecting a new payroll system for your New Zealand business.
Note:
This is not an exhaustive list and there may be other questions you should ask based on your business's specific needs. This list is intended as a prompt for discussion.
You want a vendor who has experience not only in the development and support of payroll but also one who has a clear understanding of New Zealand payroll requirements.
Cost is a critical factor when choosing a payroll system. You want a system that is affordable and fits your budget. When evaluating a vendor's pricing structure, be sure to ask about any hidden fees, such as setup or implementation costs. Also, ask about any discounts available for long-term contracts or bundled services.
Customer references are an excellent way to gauge the reliability and effectiveness of a payroll system. Ask the vendor to provide you with references from other businesses in New Zealand that have used their system. Contact these references and ask about their experience with the system, including any issues they encountered and how the vendor resolved them.
You want a vendor that provides excellent customer support. Ask about the level of support included in the payroll system package. Will you have access to a dedicated support team? What are the support hours? Do they offer phone, email, or live chat support? Also, ask about any additional support services such as training or implementation assistance.
This may seem obvious but in recent years we have seen several overseas developed payrolls come into the market and some of these have been “adapted” for New Zealand rather than “Developed” for New Zealand. Compliance with New Zealand employment and tax legislation is critical. You want a payroll system that is up-to-date with the latest regulations and requirements. Ask the vendor how their system ensures compliance with New Zealand legislation. Do they provide regular updates to the system to reflect changes in the law? Have they had any compliance issues in the past?
Your employees may have different pay rates and deductions, such as overtime, bonuses, or superannuation contributions. You want a payroll system that can handle these variations accurately. Ask the vendor about the system's ability to handle multiple pay rates and deductions for employees.
Data security is critical, especially when it comes to sensitive employee information. Ask the vendor about the data security measures in place to protect employee information. Do they use encryption to secure data? Do they have a disaster recovery plan in place? What type of access controls do they have to ensure data is only accessible to authorized personnel?
You may have other software systems in place that need to integrate with your payroll system, such as accounting software or time and attendance systems. Ask the vendor about the system's compatibility with other software systems. Do they have pre-built integrations? Do they have an API that can be used to build custom integrations?
You want to ensure that your employees are comfortable using the payroll system. Ask the vendor about the training and onboarding they offer to users of the system. Do they provide online training materials? Do they offer in-person training sessions? Do they have a dedicated support team to help with any questions or issues?
Payroll legislation and regulations may change frequently, so you want a system that is regularly updated to reflect these changes. Ask the vendor how often their system is updated and how updates are communicated to users. Do they provide release notes or other documentation detailing the changes?
You may have employees with different payroll schedules and frequencies, such as weekly, bi-weekly, or monthly. Ask the vendor about the system's ability to handle multiple payroll schedules and frequencies.
Filing PAYE with Inland Revenue can be time-consuming and complex. You want a payroll system that can generate and file necessary PAYE Information on your behalf. Ask the vendor if their system can handle this task.
Integration with accounting software is essential for seamless financial management. Ask the vendor about the system's ability to integrate with your accounting software. Do they have pre-built integrations? Do they have an API that can be used to build custom integrations?
Reporting capabilities are critical for analysing payroll data and making informed business decisions. Ask the vendor about the system's reporting capabilities. Do they provide standard reports out-of-the-box? Can custom reports be created? Can reports be exported to other formats such as Excel or PDF?
Mobile accessibility is becoming increasingly important for businesses. You want a payroll system that can be accessed from mobile devices. Ask the vendor about the system's mobile capabilities. Do they have a mobile app? Is the system mobile-responsive?
Time and attendance tracking is essential for accurate payroll processing. Ask the vendor about the system's ability to handle time and attendance tracking. Do they have a built-in time and attendance system? Can the system integrate with third-party time and attendance systems?
The process for entering employee data into the payroll system should be secure and efficient. Ask the vendor about the process for entering employee data into the system. Do they provide a secure online portal for entering data? Do they offer bulk data import/export capabilities?
Technical issues can arise with any software system. Ask the vendor about the support available for users who encounter technical issues with the payroll system. Do they have a dedicated support team for technical issues? What is the response time for technical support requests?
Your business may have various employee types, such as full-time, part-time, and contract workers. Ask the vendor about the system's ability to handle multiple employee types accurately.
You want to ensure that only authorized personnel have access to sensitive payroll data. Ask the vendor about the user permissions and access levels offered by their payroll system. Can access be restricted based on user roles? Can specific data fields be hidden from certain users?
Payroll compliance with New Zealand legislation is critical for avoiding legal issues. Ask the vendor about how their system handles payroll taxes and compliance with New Zealand legislation. Do they have a compliance team that ensures the system is up-to-date with the latest legislation?
Payroll deductions, such as health insurance and superannuation plans, are essential for employee benefits. Ask the vendor about how their system handles payroll deductions. Can the system handle multiple deduction types? Can deduction amounts be customized for specific employees?
A Leave request and Approval process is critical for managing employee time off. Ask the vendor about the system's ability to handle leave requests and approvals. Can the system handle multiple leave types?
Every business has unique payroll processing needs. Ask the vendor about the system's customization capabilities. Can the system be customized to fit your specific payroll processing needs?
Deductions can be complex and time-consuming to manage. Ask the vendor about the system's ability to handle different types of deductions.
Data backups and disaster recovery are critical for ensuring data integrity and business continuity. Ask the vendor about the data backup and disaster recovery options available with their payroll system. Do they provide regular backups? Do they have a disaster recovery plan in place?
Bonuses and other one-time payments may need to be processed outside of the regular pay schedule. Ask the vendor about the system's ability to handle bonuses and other one-time payments accurately.
Employee self-service features can reduce the workload on HR and payroll staff. Ask the vendor about the employee self-service features available with their payroll system. Can employees access their payslips and other payroll information online? Can employees update their personal information and tax information online?
Overtime and other pay rate adjustments may need to be processed outside of the regular pay schedule. Ask the vendor about the system's ability to handle overtime and other pay rate adjustments accurately.
Remote or distributed teams may have unique payroll processing needs. Ask the vendor about the system's ability to handle remote or distributed teams accurately.
Integration with other HR software systems can streamline HR and payroll processes. Ask the vendor about the integrations available with their payroll system. Do they have pre-built integrations with other HR systems? Do they have an API that can be used to build custom integrations?
Year-end tax reporting and filing requirements can be complex and time-consuming. Ask the vendor about how their system handles year-end tax reporting and filing requirements. Do they provide automatic generation of year-end tax forms?
Payroll legislation may change frequently. Ask the vendor about how their system handles changes in payroll legislation. Do they provide automatic updates to the system to reflect changes in the law?
Sick leave and other time off requests need to be accurately tracked and processed. Ask the vendor about how their system handles sick leave and other time off requests. Can the system handle multiple types of time off requests? Can the system automatically update leave balances based on accrual rules?
Reimbursements and expense reporting can be complex and time-consuming to manage. Ask the vendor about the system's ability to handle reimbursements and expense reporting. Can employees submit expense reports online? Can expenses be automatically reimbursed through the payroll system?
Third-party partnerships and integrations can provide additional value to your payroll system. Ask the vendor about any third-party partnerships or integrations they have with other software systems or service providers.
Customization and configuration options are critical for fitting the payroll system to your specific business needs. Ask the vendor about the customization and configuration options available with their payroll system. Can the system be customized to fit your specific payroll processing needs?
In summary, selecting a payroll system for your New Zealand business requires careful consideration and research. Asking these critical questions of vendors can help you make an informed decision. Be sure to evaluate each vendor's responses carefully and compare them against your business needs to choose the best payroll system for your business.
