With one of the most complex payroll systems in the world, New Zealand is at risk of strangling employment growth in red tape unless urgent attention is paid to streamlining the payroll system, according to the country’s leading payroll provider, MYOB.
To address some of the immediate issues faced by local employers, MYOB is making a significant investment in the sector, launching a raft of payroll-focused initiatives, including a new online payroll solution, a payroll bureau and a mobile web app.
MYOB General Manager – SME Solutions James Scollay says employers of all sizes in New Zealand report spending too much time calculating and processing payroll.
“With the disconnected nature of the current systems, and so many different requirements for reporting and record keeping, it’s easy to see why New Zealand is ranked as one of the world’s most complex payroll environments,” says James Scollay.
“New Zealand is generally considered a great place to start-up and run a business, but payroll is an area that remains mired in red tape.”
According to the latest NGA Human Resources Global Payroll Complexity Index, New Zealand is ranked 10th internationally for payroll complexity, and 5th for the complexity of government reporting. Over 70 per cent of local employers pay their staff weekly, compounding the time required and the risk of errors in processing and reporting.
To help streamline the process for employers, MYOB is introducing a range of new payroll products and services as part of its focus on reimagining payroll for local businesses, according to Mr Scollay.
“MYOB’s vision is to provide a connected and easy online payroll solution for all employers, whether they have one employee or over 500 staff,” says James Scollay.
MYOB estimates that its software is used to pay over 30 per cent of the New Zealand workforce. The company has been investing strongly in the local market, developing new technology and extending the scale of its offerings with payroll-focused acquisitions including Pay Global in 2014 and ACE Payroll and IMS Payroll in 2015. MYOB now covers payroll for businesses of all sizes, from 1 – 20,000 employees.
MYOB’s latest payroll product, Essentials Payroll, is an online solution which can be used as a stand-alone payroll system or integrated with MYOB Essentials Accounting. Essentials Payroll removes manual, time-consuming tasks, allowing employers to easily pay staff, track holiday entitlements, and manage reporting obligations while staying on top of any tax changes automatically.
“Our Essentials users tell us they have already cut time spent managing payroll by up to 40 per cent. This next-generation online solution takes that even further, letting employers pay their staff quickly and accurately in three easy steps or collaborate with their payroll provider to manage the process,” says James Scollay.
“It’s also going to streamline communication between employers and the IRD, which currently has to deal with a wide variation of systems and providers and still has to process paper returns from a significant proportion of businesses.”
To complement the new Essentials Payroll, MYOB is introducing a new payroll intermediary service, MYOB PayAgent, at an extremely competitive price in the market compared other leading intermediary service providers. The service will allow customers to nominate MYOB as their payroll provider enabling them to outsource payments to staff and PAYE as well as their IRD reporting obligations.
The company is also focused on enhancing communication between employers and their staff, launching a new mobile web app, MYOB YourPay, which allows staff to complete timesheets and receive their payslips online. MYOB YourPay is an ideal way for employers to interact with employees who are on the go or working remotely. It helps streamline pay runs, minimise manual data entry and double handing and allow staff to clearly track leave entitlements.
For larger businesses wanting a fully featured cloud payroll solution, MYOB Advanced People will be launching later in 2016.
Mr Scollay says MYOB believes working to reduce payroll complexity for New Zealand businesses of all sizes will make a real difference to the local economy.
“Our vision is to provide a connected, end-to-end payroll solution for all employers that enables them to engage with employees, collaborate with service providers, automate compliance and integrate systems to minimise data duplication and manual processing,” Mr Scollay says.
“We are confident this will boost productivity, reduce complexity for New Zealand employers and free up their time to focus on their business and what they do best.“
MYOB is inviting partners and local businesses to register to trial the new products. The company is also hosting a nationwide Payroll Seminar Series, which will feature guest speakers from the IRD and MBIE, covering new legislative changes, employment law and employer obligations. Registrations for the Payroll Seminar Series open 15 February at www.myob.co.nz/events.
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MYOB (ASX:MYO) is a leading cloud based business management solutions provider. It makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, websites, job costing, inventory and more. MYOB provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. It is committed to ongoing innovation, particularly in cloud computing solutions, and in 2015 was awarded the BRW award for the most innovative large company for 500+ employees and placed 2nd in BRW’s Most Innovative Companies Award list across all categories nationally. For more information, visit myob.co.nz or follow @MYOB on Twitter.