SAP and Oxygen help organisations manage the impact of ever changing payroll legislation
Oxygen is currently working closely with a number of customers on their payroll systems to ensure they are compliant and proficient at paying people in a timely and accurate fashion.
Kiely says payroll is a critical process that is often in flux due to the release of new government legislation.
“Payroll systems change whenever new legislation from government comes into effect. Unfortunately many organisations overlook the importance of ensuring their systems are compliant with national legislation, or they leave it to the last minute to implement changes which often creates panic.”
He says organisations that do not take the time to analyse legislative changes that affect payroll are often unprepared for the impact these changes can make.
“Payroll processes in New Zealand are notoriously complicated and subject to legislative change. It is important organisations schedule yearly updates and properly start to analyse any necessary changes at least three or four months before the end of the financial year.”
In New Zealand there have been a number of legislative updates this year that affect payroll, including changes to KiwiSaver, new tax codes and ACC levies.
If companies don’t keep up to date, says Kiely, the consequences of non compliant payroll can include high administration and payroll solution support costs, “together with the risk that staff will not be paid accurately and on-time”. He says organisations also need to ensure they have the latest SAP payroll support packs loaded on their system.
“SAP software is extremely good at accommodating new legislation and will do so seamlessly as long as the company applies latest updates released by SAP in a timely and organised way.
“Falling behind in support packs can become a complex problem,” Kiely says. “Each support pack has prerequisites that need to be applied from the previous one. And while each change affects payroll, it could affect other areas of SAP as well, which means comprehensive regression testing needs to happen. It can be a big cost to the business to let this slip.”
To find out more about Oxygen’s payroll compliance services please email us
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