Payroll essentials and what you need to know

Payroll, while an essential part of your business, is also one that is commonly undervalued, especially for smaller businesses where dedicated payroll software may not be used.

We’ve come up with a list of payroll essentials to ensure that your payroll is hitting the target month after month.

1. Inaccuracy in your payroll system

One of the more commonly seen payroll errors goes back to data input when adding in an employee. If any part of this process is done incorrectly it could result in incorrect payments being made and unhappy employees. For example, an incorrect tax code or tax rate means that your employees could be paying more tax than necessary, which can be a headache for you to sort.

You also need to ensure you have accurately accounted for, and paid, the hours worked by each employee. Similarly, your payroll information needs to be kept up to date with any local laws or tax law changes, otherwise your payments can be incorrect.

Triple check this data and get it right to ensure less payroll drama, or employ the services of a chartered accountant to guarantee your business’ payroll responsibilities are delivered on time, every time.

2. Security

All payroll information needs to be kept confidential and secure. Any personal information on your employees, including names, IRD numbers, address details, and wage / salary information, needs to be covered.

Many payroll packages allow for encryption software, meaning the information is scrambled unless you have the correct key to allow you to read it. If you don’t use encryption software then making sure passwords and file protections are used is crucial.

3. Overtime

It isn’t uncommon for businesses to pay overtime rates to their employees. Your payroll software can be programmed to allow for an increased rate for an employee’s weekly or monthly hours over a specified number. This means goodbye to potential miscalculations of overtime.

4. Record keeping

Payroll records, from sole traders through to large multinational organisations, are required to be kept for a minimum of at least six years.

Auditors look at this information and, therefore, it’s important to show what happened and when. Supporting information is particularly important to help provide quick and accurate answers when any payroll errors have been made or there are other discrepancies. Well-kept records is a must for any successful business and failure to keep payroll records can see you fined.

5. Failure to make payroll deadlines

Processing payroll can be a big time commitment. Like many office administration tasks, payroll can seem like it will take no time at all but before you know it, it’s taken hours.

Ensuring you have all employee information prior to payroll (IRD number, tax code/rate through to name, address and bank account), and correctly capturing the hours that your employees have worked, means an easier ride when it’s payroll processing time.

There are many ways that a poorly functioning payroll system is costly for your business – from overpayments to employees through to time commitments. Outsourcing your payroll could give you the ability to focus your time on other areas in your business that need attention.

If you’d like to discuss outsourcing your payroll, or payroll systems and processes, then get in touch with us. We can create a system to work alongside what you have already, or suggest ways of taking the headache out of a poorly functioning system. Give us a call.

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How to prepare for the end of financial year

20 February 2025

The end of the financial year is fast approaching, so if you’re balance date/end of financial year is 31 March, there are a few things you need to do to help us prepare your financials. Take a stocktake If your business sells products or has stock, you’ll need to do a stocktake on 31 March. If you’re a business that sells products, then you need to take a stocktake of your physical inventory. If you’re a farmer, then you need to take a physical livestock tally. Send in your EOY papers Compile a folder (digital or hard copy) with a copy of the following documents: Bank statement that shows the balance on 31 March 2025 for all your bank accounts and loans. Insurance invoices. ACC invoices. Loan statements for the year (if applicable). Any new loans or refinancing documents. Invoices for assets purchased and sold. GST workings and reports. Submit the online questionnaire You’ll also need to fill out and submit the online questionnaire. You should receive an email from us in April/May, with a link to fill out and submit the questionnaire. If you haven’t received an email with the link by the end of May, let us know.

Supporting the Heart of Dargaville and Whangārei Communities

17 February 2025

At Gunson McLean we are more than just a business offering financial expertise we also support our communities in Dargaville and Whangārei. By partnering with various local organisations, we help sustain and strengthen sports, recreation, and community initiatives in the region. Empowering Local Sports Clubs We understand the role sports play in bringing people together, promoting teamwork, and supporting youth development. We are proud to sponsor the Old Boys Marist Rugby & Sports Club, Hikurangi Rugby Football Club Inc, Maungakaramea Hockey Club, Maungakaramea Bowling Club, Mid Western Rugby Squash Club, Kamo Rugby & Squash Club, New Zealand Vikings Rugby Football Club Inc., and the Cobham Cricket Club. Promoting Outdoor Education We also believe that outdoor education is essential for youth development and are proud to work with the charitable trust, Pātaua Outdoor Education & Recreation Trust (POERT). We have been closely involved in the Trust’s activities for the past 8 years – handlings its financial matters – and Craig Gunson is the current Treasurer. Backing Community Halls & Facilities We’re proud to support the Whareora Hall Society and Whareora Cemetery Board as well as local cycling and motorcycling groups Marsden Wheelers Cycling Club Inc., and the Whangārei Motorcycle Club. We are passionate about the causes we support, and the opportunities and growth this enables in our Dargaville and Whangārei communities.

Optimise your business by taking care of your employees

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Most people agree that optimising your business is a good idea and spend hours looking at optimising the supply chain, storage, overheads etc. However, they forget that people are one of the most critical elements in your business. By providing a caring, supportive workplace for employees you also drive the success of your business. Studies show happy workers are productive workers and, as an employer, it’s a no-brainer to provide a workplace where employees feel valued, and where they can flourish. Here are five key ways to build employee relationships, nurture your team, and create a great workplace for your employees: 1. Invest in your employees This doesn’t mean ‘casual Friday’s’ or a pizza night once a month. This is about offering your employees access to training programmes, workshops, conferences, and mentorship programmes. It’s about the professional growth of your employee and how you can enhance their skills and make them feel truly valued as team members. 2. Create a positive work environment Creating a positive work environment is about cultivating a workplace culture that feels positive and supportive of your employees. Be open and transparent with your employees, listen to their feedback and have a strong focus on employee wellbeing. This could include offering flexible working arrangements, benefits such as health insurance, and other perks. 3. Recognise and reward your employees When an employee goes above and beyond, make sure your recognise and reward them. This could by through a performance bonus, employee-of-the-month programmes or even extra time off in lieu. Feeling valued comes partially from feeling rewarded and can be an amazing motivator. 4. Give employees autonomy One of the key ways employees feel trust, is by being given autonomy. Being trusted to come up with their own solutions, processes, and ideas is key to making people feel as if they ‘own’ their role. This helps employees feel fully involved and also brings new ideas, solutions, processes, and efficiencies to the table. 5. Put wellbeing at the heart of your culture Life is stressful. And work-life can be stressful. A well though out wellbeing programme can help your employees manage stress and, in turn, benefits your business. A wellbeing programme is different for each business but some ideas could be checking in with team members, creating a ‘ask for help’ culture, flexible working arrangements including work-from-home days, and offering mental health support. Making sure you’re a caring and supportive employer is vital to your business strategy. With a team who feel valued, nurtured, and encouraged, you’ll all be happier and more productive.