Managing Payroll: Tips for Small Business Owners

Payroll might not be the most exciting part of running a business, but it’s one of the most important, especially if you want to keep your team happy and stay compliant.

Get the Basics Right
Make sure your employee records are up to date. This includes employment agreements, IRD numbers, KiwiSaver information, and leave entitlements. It’s also essential to classify employees correctly, contractor or staff, so you’re meeting the right tax obligations.

Use Payroll Software
Manual payroll can lead to costly errors. Payroll software helps automate calculations, generate payslips, and stay compliant with things like PAYE, holiday pay, and KiwiSaver contributions. Many systems now link directly with the IRD, simplifying filing.

Stay On Top of Deadlines
Filing PAYE and other deductions late can lead to penalties. Set reminders or use software that automates submission to avoid missing important dates.

Be Transparent With Staff
Provide clear payslips that show earnings, deductions, and leave balances. This builds trust with your team and helps reduce confusion or disputes.

Understand Your Obligations
Payroll laws can change, especially around things like minimum wage, leave entitlements, or KiwiSaver. Check in with your accountant or use trusted NZ payroll resources to make sure you’re up to date.

A well-managed payroll system isn’t just about compliance, it’s about running a professional business and keeping your team confident in how they’re paid.