FOR

Senior payroll practitioners or consultants who want a deeper understanding of complex payroll calculations across a range of payment situations and in the configuration of a payroll system.

PURPOSE

How complex payroll becomes within a business depends on the range of terms and conditions provided to employees by their employer. This practical course covers a range of more complex payroll calculations and explores when and how they are applied. Participants will be provided with a comprehensive manual that includes fully worked examples and will undertake a range of exercises to understand these calculations in depth.

COURSE ACCESS

All learning activities are available through the eLearning environment. When starting the course, a course manual will be couriered to the student as the guide for the course.

Students can also access downloadable information and a range of external website links and resources.

Activities and assessments are accessed through the eLearning environment, uploaded, marked, and reported online to the student.

You will also have access to the course material in the form of an online flipping book if you wish to start before the physical course material arrives.

DURATION

As an online course, once the course start date is booked, the course will be available for six weeks only. Additional extensions can be requested based on work or other circumstances if needed.

COURSE CONTENT

Holidays Act 2003

• Defining payments to be included in different periods of gross earnings
• Discretionary payments
• How backpay impacts Holidays Act gross earnings
• Double-dipping issues with taxable allowances and their impact on the Holidays Act
• Changing the working week (by agreement) and the impact on annual holiday entitlement
• Calculating leave in hours, days, and weeks while still ensuring compliance
• Converting hours, days, and weeks when entitlement changes by agreement
• Understanding the divisor for leave calculations (AWE, OWP, ADP)
• Determining an otherwise working day when the employee works a variable pattern
• Transferring public holidays: Christmas/New Year, Waitangi Day, and Anzac Day
• Determining an accrual rate for annual leave based on a day/week/month (by agreement)

Payments from Holidays Act Remediation

• Effects of underpayments on gross earnings
• How remediation payments are taxed and how they impact gross earnings in the future

Parental Leave

• Extended examples of the impact of parental leave on gross earnings for annual holiday entitlement before, during, and on return to work

KiwiSaver, Superannuation, and ESCT

• Working out the grossed-up amount for ESCT
• ESCT rate calculation examples
• Taxing contributions at the employee’s tax rate
• Definition of salary and wages for KiwiSaver purposes
• Which superannuation/KiwiSaver schemes an employer is not required to contribute to

Extra Pays (Lump Sums)

• Step-by-step extra pay tax calculation
• Defining the four weeks for extra pay (start point, what payments are included/excluded)
• Extra pay paid outside the standard pay period
• Extra pay calculated as secondary tax

Regular Bonuses

• Calculating a regular bonus over more than one pay period
• Calculating a regular bonus over more than a month

Employee Share Schemes (ESS)

• What income is included or not included in ESS benefits
• Vesting examples
• Calculating ESS (with and without deducting PAYE)

Child Support

• Protected net earnings step-by-step walkthrough

Calculating Protected Net Earnings on Other Attachment Orders

• Attachment types and examples
• Hierarchy of deductions (which comes out first)

IRD Arrears Payments

• Calculating Section 157 notices

Injury Prevention, Rehabilitation, and Compensation Act 2001

• Calculating the seven days used to determine first-week workplace accident payments at 80%
• Calculating a top-up payment to ACC using leave under the Holidays Act
• ACC on termination and its impact on annual leave being paid out
• Calculating abatement of compensation

NZPPA Legal & Best Practice Procedures

Purchasing Leave Scheme

• The advantages and disadvantages of a purchasing leave scheme
• What rate to use
• How it relates to other leave provided by law
• How purchased leave is taxed, and issues to be aware of

Paying a Deceased Employee’s Final Pay (termination payment less than $15,000)

• What the requirements are
• Steps to take
• Paperwork required

LEARNING OUTCOMES

At the end of the course, participants will be able to:

• Calculate a range of advanced payroll calculations
• Ensure compliance with legislative requirements is achieved
• Understand the difference between agreed terms and legislative requirements for a