HOW TO ENTER ANNUAL LEAVE DETAILS – CHRISTMAS 2011

The three most common scenarios for paying staff over the holiday period are:

(1)        the payroll is processed on the normal paydays over the holiday period and staff work the days in between Christmas and New Year.

(2)        the staff are paid out for all their annual leave in full before they go on holiday.

(3)        The staff are on holiday until the 9^th January (or longer) but are paid each week on the normal pay days.

Choose the scenario that fits your company.

1.         THE PAYROLL IS PROCESSED ON THE NORMAL PAYDAYS OVER THE HOLIDAY PERIOD and STAFF WORK THE DAYS IN BETWEEN

This company has a Monday-Sunday payroll.  The employee works up until Friday 23^rd December and is paid normally for that week.

The following week the employee works the days in between Christmas and New Year and because Monday and Tuesday are statutory holidays, the pay details may look like this:

In the above example the employee is paid for 2 statutory holidays, 26^th and 27^th December and works for 3 days up until New Year’s Eve.
 

The following week the employee is paid for 2 statutory holidays on 3^rd and 4^th January, and works the next three days.  (See example above).

 2.         COMPANY CLOSES DOWN FOR HOLIDAY PERIOD, STAFF PAID FOR 3  WEEKS

This company closes down for the holidays and staff are paid out their holiday pay beforehand.  This company closes down on Friday the 23^rd  December and reopens on Monday 9^th January 2012.

The staff are given all their pay for the 3 weeks together.

Note: The taxable periods have changed to 3 as this employee is being paid for 3 pays.  This means that the tax for the 3 pays will be spread correctly over 3 taxable periods.

3.         THE STAFF ARE ON HOLIDAY UNTIL THE 10^TH JANUARY BUT ARE PAID EACH WEEK ON THE NORMAL PAYDAYS 

The staff are paid as normal on the week leading up to Christmas.

The following week the staff receive a statutory holiday for the 26^th and 27^th December, and then 3 annual leave days for the 29^th, 30^th and 31^st December.

The following week Monday and Tuesday are again paid as statutory holidays (2^nd  and 3^rd January).  The following three days are paid as annual leave days.

Note:  The taxable periods have changed to 3 as this employee is being paid for 3 pays.  This means that the tax for the 3 pays will be spread correctly over 3 taxable periods.  The number of days paid are 15 in this case.

3.         THE STAFF ARE ON HOLIDAY UNTIL THE 9^TH JANUARY BUT ARE PAID EACH WEEK ON THE NORMAL PAYDAYS (instead of receiving all their pay for 3 weeks at once)

The staff are paid as normal on the week leading up to Christmas.
The following week the staff receive a statutory holiday for the 26^th and 27^th December, and then 3 annual leave days for the 28^th, 29^th and 30^th December.

The following week Monday and Tuesday are again paid as statutory holidays (2^nd  and 3^rd January).  The next three days are paid as annual leave days.

What happens when staff normally work on Sundays?

This year Christmas Day and New Year’s Day fall on a Sunday and Boxing Day and the 2nd of January fall on a Monday.

There are no special rules for Boxing Day or the 2nd of January; these public holidays are observed on the days they fall.  Special rules will apply to Christmas Day and New Year’s Day because they fall on a Sunday.

For employees who normally work on a Sunday, Christmas Day and New Year’s Day are observed on that day. 

For employees who normally do not work on Sunday, Christmas Day and New Year’s Day are transferred to the following Tuesday (27 December 2011 and 3 January 2012).

Please contact the SmartPayroll Helpdesk on 0800 10 10 38 if you need help entering the pays over the Christmas holiday period.

Quite simply, we can state we have had our biggest year of growth, ever.

Since humble beginnings back in 2003, SmartPayroll has had the foot firmly on the pedal.  And as 2011 nears an end, there has certainly not been any letting off the gas.

Yes, we can pat ourselves on the back, and congratulate all our staff on a year well done, but more importantly it’s all been as a result of you.  So, thank you.  You use our payroll, you read our blog, and you know that we only ever work tirelessly to make sure your business payroll runs as smoothly as possible. 

Next year, we not only want to continue this leading pace but race forward even further.  We hope you’ll continue to stay along for the ride.

With the sun starting to shine, the BBQ’s getting a dust off and everyone’s pasty legs starting to see the light of day, it can mean only one thing.  Summer. 

With holidays well on their way and Christmas sneaking up on everyone, the team at SmartPayroll are frantically busy.  With last minute mad rushes to transfer your business payroll to our online system, we doing our best to make it all happen on time. So, be sure to get in touch with us sooner rather than later.

But you don’t need to worry if you need help over the holiday period – we’ll be here every day except the stat days waiting for your call.

We want to thank Westpac for allowing us to use their new business hub in Christchurch to run a FREE payroll course for Christchurch business owners last Friday.  It was a huge success and from the feedback we received, very helpful to Christchurch employers.  We’ve run these courses in the Wellington area before but this was the first time we have taken it to Christchurch.  Unfortunately we had to turn attendees away in the last week when we reached our maximum but don’t worry we’ll be doing it again in the New Year. 

The course covered the essentials of employers obligations and payroll legislation, how not to get in trouble with the IRD and the payroll choices available for small businesses.  We even helped some of the attendees solve their payroll issues.  SmartPayroll will be running these FREE courses as much as we can throughout 2012 in all the main centres and we’ll let you know when and where as soon as the dates are confirmed.

Christmas is only around the corner. Yes, you heard it right – Christmas.   Of course some of us still have to work, even if the sun is streaming outside the office windows.

As an employer though, working out what days are holidays, what days are taken as leave, and whether your staff are getting paid correctly can be confusing, especially because Christmas day this year falls on a Sunday. 

SmartPayroll is your saving grace. It’s automatic. Simple as that. SmartPayroll will record it all correctly for you, process it as normal and leave you completely stress free. Sweating over the payroll is the last thing you should be thinking about at that time of year. So don’t, leave it to us and you’ll be “sweet as,” as the old Kiwi saying goes.

Closer to the time Smartpayroll will send you details on how to enter the holiday statutory days and of course if you have any questions you can always call our helpdesk on 0800 10 10 38.

Looking to streamline your payroll processes? Looking to get practical advice from the best in the business? The answers are of course yes.  Isn’t every small business owner looking to do just that?  

Well SmartPayroll is at hand. On November 4^th we will be taking all our knowledge and expertise down to the Westpac Business Centre in Addington, Christchurch in a bid to further help the small businesses of Christchurch with their recovery process.

But you don’t have to be from Christchurch to take advantage of this and nor do you have to be a Westpac customer.  

So what could top all of that? Well, it’s FREE!

 With the Chamber of Commerce also on hand for all your questions, some of the key areas we will touch on in the 2 hour session are:  

• Payroll basics and essentials
• PAYE and other tax requirements
• Payroll deductions
• All employer obligations regarding IRD payments and penalties, ACC levies, KiwiSaver and staff leave.

So, all that is left to do is book your place. It’s as easy as getting in contact with Chris on 0800 10 10 38 or emailing chris@smartpayroll.co.nz. But if you’re not quick you might miss out and nobody wants that.