The payroll environment in New Zealand is becoming more complex with issues ranging from payroll tax and employment obligations through to administration of the Holidays Act 2003.
KPMG offers a wide range of services and opportunities for meeting the challenges of payroll administration. Based on our experience and market leading expertise on tax and specifically payroll matters, we have unique insight into the key payroll issues facing organisations and the expertise to assist. Examples of payroll issues which we have identified and managed for other clients include:
- Treatment of taxable and non-taxable allowances
- Calculation of tax on emoluments and discretionary income components
- Categorisation of income and the implications for ACC, working for families, student loans etc.
- KiwiSaver, superannuation and employer superannuation contribution tax obligations
- Consideration of taxable benefits in kind
- Management and reporting of bonuses
- Employee share scheme management and taxation
- Consideration of tax treatment for employer-provided accommodation
- Assisting with payments made to international staff members, such as expatriates as well as business travellers.
Payroll review
A timely payroll review assists with the identification and management of key risks and further, creates opportunities for process improvement in areas such as:
- General payroll handling and process
- Cost reduction
- Process optimisation
- Time efficiency
- IT infrastructure
- System and management controls.
Our multidisciplinary team leverages our collective industry expertise to create the best solution for an organisation. KPMG tailor the scope of any review to meet the client’s needs. A payroll review can be combined with a review of compliance with the Holidays Act 2003, or can be stand-alone. Following any review, our team works with clients to determine the solution that works best for their business and any issues identified, whether this requires changes to the treatment in the payroll system, assistance with remediation of historical issues, liaising with Inland Revenue, assisting with a communication plan with employees.
Payroll obligations for international employers
Our payroll team has worked with many clients to ensure that payroll is correctly reported in New Zealand. We work with our clients to ensure the best and most practical way forward. We have experience in running shadow payrolls for clients, as well as assisting in ensuring that the internal payroll team is meeting their New Zealand tax obligations. This can also include employee share scheme sourcing. Where necessary, we liaise with our international KPMG member firms to ensure that a consistent approach is used worldwide for our clients.