Outsource your payroll - and save time, money and stress!

15 February 2024

Do you know how much time you spend on payroll every week? It's probably a lot more than you think! Payroll is one of those essential tasks that you can't afford to mess up, or you'll face serious consequences. But it's also tedious and complicated - the more employees you have, the more complicated it gets, but your team deserves to be paid correctly and on time, so payroll has to be done.


So, how can you solve this problem? The great news is, you don't have to do it yourself! Outsourcing your payroll function is a smart and efficient way to save time and money, and to reduce your stress levels!


Payroll Outsourcing Explained

Payroll outsourcing is a simple idea. You hire a payroll expert to take care of the entire payroll process for you. You save time and ensure that your staff get paid correctly and on time.


A payroll outsourcing provider can handle different aspects of payroll, such as data entry, pay calculation, deductions, fund transfers, tax filing, and record keeping. You can decide which services you want to outsource based on your business needs. Your payroll provider can also integrate with your payroll software (if you have one) so that you and your staff can access the relevant information anytime.


Why Should You Outsource Your Payroll?

Payroll is a crucial task for any business, but it doesn't have to be done by you. In fact, there are many benefits to outsourcing it to a professional service. Here are some of them:


Save money

Think about how much time you spend on payroll every week. Maybe an hour or more? If you charge $100 an hour for your services, that means you are spending $450 a month on payroll. That's a lot of money that could be better spent elsewhere. Outsourcing your payroll to a professional service will cost much less than that, and free up your time for more profitable activities.


Save time

By outsourcing, you are not only saving money, but also time. Imagine what you could do with an extra 4.5 hours a month or 54 hours a year. That's almost two weeks of extra work time that you could gain, every year.


Ensure Compliance

How familiar are you with all the laws and regulations regarding employee rights and obligations? You may know the basics, but not the details. However, you’re liable for any errors or violations that occur in your payroll. That exposes you to the risk of fines (or worse) if you make a mistake. Fortunately, payroll professionals are experts in this field and know how to comply with all the rules, protecting your business and employees.


Leverage Expertise

You probably started your business because you are passionate about what you do, and good at it. Along the way, you have learned how to do the things necessary to run a successful business. Payroll is one of those things, but not your core competency. Payroll professionals, on the other hand, specialise in this area and have the skills and experience to do it well. By outsourcing your payroll to them, you can focus on what you do best.


How do you choose the right provider?

Choosing the right payroll provider is crucial for your business, as they will handle a vital aspect of your operations. To make an informed decision, you should keep in mind these factors:


Know your needs

Different providers offer different types of service. You should compare their offerings and see if they match your requirements, without paying for unnecessary features or missing out on essential ones.


Communication level

Even if you outsource your payroll, you still need to communicate with your provider regularly to update them on any changes in your staff, or payroll policies. You should find out how they communicate and how much access you have to your own data.


Trust

You should feel confident that your provider is reliable, accurate, and compliant. You can meet them in person or online to get a sense of their professionalism and rapport.


Ask for referrals

One of the best ways to find a good provider is to ask other businesses who use their service. You can get honest feedback on their performance and satisfaction.


If you would like to know more about how outsourcing your payroll could be beneficial for your business, then get in touch with us today. 

The art of delegation

11 August 2025
How often do you get to the end of a working day and wonder where the time went? Perhaps you never got to item 3 (or even item 1!!) on your to-do list. How can you solve this problem without working longer hours? The answer is very simple, but the art in the solution is where the gold is. The answer to free up time is to delegate more – either to existing team members, new people you recruit, or externally to outside contractors. However, if delegation were that easy, everyone would be doing it now, right? So, what is the art of delegation? We say art, because delegation is not an exact science; different approaches are needed depending on who the ‘delegate’ is. Time and effort are required to effectively pass on tasks to others. Often, the time the delegator needs to put in initially is greater than if they did the work themselves – that’s why so many people don’t delegate. The view that ‘it’s quicker for you to do it yourself’ holds you trapped and unable to be more productive and effective yourself. It also stops others from developing better ways to do things than you already know, i.e. if you teach them your way, then they can master that AND add their own value – two minds being better than one. Here are some essential principles to apply to help you to delegate (as opposed to abdicate!): Delegation Assess the task, issue to the right person and support - helps build trust and respect Be specific and crystal clear for greater communication Request they repeat back instructions, so you know you were understood, enabling higher productivity Set a time frame and request clarification that the task has been achieved, ensuring jobs are completed on time and are profitable Both parties to review - opens the door for future work Abdication Issue tasks to anyone and forget about it - shows distrust and a lack of respect Giving unclear and little information results in poor communication Don’t ask if you were understood - results in low productivity Don’t set a time frame – it can mean jobs are delayed and over budget Different expectations can result in disgruntled clients No review results in no future work Delegation is a skill to be learned; applying these principles consistently will ensure long-term success. “No person will make a great business who wants to do it all himself or get all the credit” – Andrew Carnagie Action list: Which tasks am I currently doing that I could delegate to others? What can I do with the time I free up? Who are the best people for me to delegate these to? (Make sure they want to do these as part of their career development). What is the best way to document what is expected and how it should be done? What support and review process is needed to ensure success?

Work vehicles? Stay on top of tax with logbooks

11 August 2025
Logbooks are useful records of business expenses relating to work vehicles and this is important when calculating what tax deductions you can claim. Depending on your business entity type, different tax rules apply when you use motor vehicles to earn income, and you might use a logbook to track expenses in different ways. Sole traders and partnerships can claim income tax deductions for motor vehicle expenses if the vehicle is used to help earn income for the business. If you don’t use the vehicle exclusively for business, you can’t claim 100% of vehicle expenses. You need to work out the business use of the motor vehicle to calculate what deduction you can claim. You can do this either by using a logbook to track actual costs or using a logbook over a test period to establish the average business usage. Companies are a bit different. Where company vehicles are used partly to earn income and partly for private use, vehicle costs associated with private use are liable for FBT. Companies can use logbooks to keep track of work-related costs and show either that the vehicles are work-related vehicles which don’t attract FBT where used for work purposes only, or that FBT is accounted for correctly where there is some private use of other vehicles. The logbook becomes a record of work-related use and of private use subject to FBT. Where a company restricts private use of the vehicle, a logbook is used as evidence that employees have complied with the restriction. Whatever type of business structure you have, we can advise you on keeping good records and understanding what you can claim.

Changes to KiwiSaver: How to get your business ready

11 August 2025
Major changes to KiwiSaver were announced in Budget 2025. The KiwiSaver voluntary savings scheme is aimed at helping New Zealand workers save for retirement or buy a first house. But with the rising cost of living, action was needed to make KiwiSaver fit for purpose and more fiscally sustainable as a savings scheme. How will these changes affect your employees and your small business? Let’s take a look at the details of these KiwiSaver changes. Changes affecting your employees First off, let’s outline how the initial changes announced in Budget 2025 will affect your employees and other Kiwi workers: Since 1 July 2025: Younger workers will qualify for government contributions: People aged 16 and 17 will qualify for government contributions, so long as they meet other eligibility requirements. Prior to 1 July 2025, members must be 18 or older to qualify. Government contributions to halve: The government KiwiSaver contribution will halve, reducing the maximum government contribution from $521.43 to $260.72 each year. High earners to lose government contributions: People who earn more than $180,000 of taxable income in a year will no longer qualify for government contributions. No change to 2025 government contributions: There’ll be no change to government contributions for the year ending 30 June 2025. These will be paid in July and August at the current government contribution rate. Changes affecting your small business Next, let’s lay out the KiwiSaver changes that will directly affect your business: From 1 April 2026: Employer contributions will rise to 3.5%: From April 2026, the default KiwiSaver contribution rates for both employers and employees will rise to 3.5% – up from 3%. Employees can choose to remain contributing at 3%: Employees who are members of the KiwiSaver scheme will be able keep their contributions at the current rate. They can apply for a temporary rate reduction from 1 February 2026, if they want to continue contributing at 3% from 1 April 2026. Employers can match the rate reduction: As an employer, you’ll be able to match your employee’s temporary rate reduction. Once your employee moves to a higher contribution rate, you’ll need to increase your employer contributions to the default 3.5% rate. Inland Revenue will notify you of this change. Younger workers will qualify for KiwiSaver contributions: People aged 16 and 17 will qualify for employer contributions. If they contribute to KiwiSaver from their wages, you will need to start making employer contributions. From 1 April 2028, the default contribution rates for employers and employees will rise again to 4% (up from 3.5%). Getting ready for the KiwiSaver changes These amendments to KiwiSaver could have a significant impact for your small business. Increased employer contributions will increase your payroll costs and stretch your cashflow, as will making contributions for younger workers in the 16 to 17-year-old age bracket. You'll also need to update your payroll software and processes, to ensure you’re making the correct contributions for the right people, at the right rates. 
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