Frequently Asked Questions (FAQ)
How does Thankyou Payroll work?
- You sign up with us.
- We'll send you an email with a form attached that allows us to do your PAYE monthly employer returns, which we will do for you from now on for free!
- If you're a new employer, you must also fill in an IR334. It's VERY IMPORTANT that you do this part! We can't do your returns if you don't fill it in and you will get steep fines from the IRD too.
- You add employee details
- Enter timesheet information into our system (hours or days worked etc) each period.
- Our system calculates tax obligations like Kiwisaver and Student Loan.
- You transfer the total displaying on the dashboard page to us.
- We pay your employees their net pay and transfer their tax obligations to the IRD.
- We monitor leave allowances and email out pay slips to all your employees
- We file your IR348 and IR345 returns and pay the IRD your employees tax obligations.
- See our how it works page for more info.
How long does it take to get started?
You could sign up and have a pay cued up ready to go in less than 30mins! To sign up all you need to do is go to the sign up page and:
- Choose a username and password.
- Click the activation link in the email we'll send you.
- Enter basic business details (like IRD number).
- Enter your employee's basic details (IRD number, tax code, pay rates and it's a good idea to select a leave option first up too).
And you're ready to process your first pay! On around the 5th of the month following your first processed pay, we'll ask you to fill out an IR920 form, which allows us to let the IRD know we are acting on your behalf when filing your PAYE. For new employers we will also provide an IR334 Employer registration form. If you are transferring from another payroll provider as an exisitng employer you will not need to fill this in.
To summarise, once you're onboard:
- We'll send you an IR920 PAYE linking form.
- You'll fill it in and send that back to us!
- We'll also send you here, to register as an employer if you haven't already. This part is important!
- We'll get your filing done for you from here on in! Easy.
Do I need any special software or hardware to use Thankyou Payroll?
Because Thankyou Payroll is an Internet-based application, you don’t need any specialised hardware or software. You just need a computer connected to the internet and any internet browser other than Microsoft Internet Explorer version 7 or lower which we don't support.
Do I need this or that kind of payroll system currently?
Nope. You could be managing your payroll on the back of an envelope or be using a professional. Thankyou Payroll can offer any small to medium business the same time saving, stress saving service.
We have two different payrolls under the same organisation — can I manage both payrolls separately?
Our clients can run 2 payrolls from the same account even when they are all part of the same organisation. Our set-up would be extremely well suited to your needs.
We have been advised to look into external payroll agencies to help lessen the load. How can Thankyou Payroll help?
We can reduce the load of processing pays each week down to -> entering hours into timesheets + making one bank transfer. We send the IR348 and IR345 returns in each month, email pay slips, monitor leave allowances and much more.
Would we be able to have a go at using your system to see whether it suits our needs before we sign up?
Yes you can test out the system. For any new client they can cancel at any time during the first 30 days - before we get to the point of processing your first return - if that would be a suitable test. Alternatively you we can give you access to our generic demo account so you can play with that.
Should we wait until end of tax year to move to Thankyou Payroll?
You can transfer over any time BUT it is simpler to do it at the begining of a given month. You can enter previous pay information back to the start of the financial year without much hassle. We can provide you with guidence in regard to this if required.
Changing from another provider
We are happy to help with the transition between any existing payroll service or tool and our service. You'll just have to see what conditions they have around cancellation of services and, if you're using a payroll intermediary, file an IR913 to let the IRD know that you're changing payroll provider.
Do you need pay histories for staff?
Previous pay information (12 months of it) can be added to help the system automatically calculate how much to pay an employee for a day of leave taken. This information can be entered for each employee easily as long as you have the data on hand. If you don't want to enter it you don't have to. When the system doesn't have the data it needs to perform any given calculation it will ask you if you can provide it. If you are unable to provide it this will not prevent you from continuing. Most calculations only need the information you enter while adding an employee. Adding an employee is a process that should only take about 5-10mins if you have their data on hand.
Will you file our IR345 for us from when we sign up onward?
Yes once we have your IR920 and we can pass it on to the IRD we will be able to file IR344, IR345, IR348 and IR349's on your behalf. If a client wishes for us to file a return that includes pays not made through our system we would need information about these external pays entered into our system and the transfer of any tax obligations associated with these pays made to our client accounts prior to filing time. We also become the first contact point for the IRD for general payroll matters.
Would it be possible to just use Thankyou Payroll to keep track of leave and pay and to produce statements and to transfer the wages to our employee directly?
Sorry but no. Currently we only offer services that involve clients making us their official payroll intermediary. We then file all their payroll returns and get all their payroll related mail from the IRD. This is so we can claim the subsidy for all our clients. If we're not paying a client's employee(s) for them then technically we can't claim the subsidy for that client.
We have a medium sized business and currently use datacom/Smart payroll/ iPayroll, how would Thankyou Payroll compare?
We offer similar services but we can offer them at a sgnificantly lower price.
How much does it cost?
Thankyou Payroll (fully featured) is free if you can cope with a two day processing time. There are no setup costs, hidden costs or fine print to worry about. If a one day or overnight processing time is more your style Thankyou Payroll costs 50 or 75 cents per employee per pay period respectively (for more info refer to our plans and pricing page).
How does Thankyou Payroll compare on price?
Thankyou Payroll is the only free Payroll intermediary service in New Zealand that offers a fully featured service for as many as 50 full time employees. We manage your payroll on the subsidy we receive from the IRD, most payroll intermediaries bank this as extra income. Everything we do is about efficiency and low costs so we can afford to offer a service of the highest standard for free to small to medium businesses in NZ that have far better things to spend their money on. Here’s an example of the pricing plan for 2 of our direct competitors using an example payroll of 5 full time and 5 part time staff paid weekly processed overnight (please feel free to check their websites for more details):
|$50 set up fee||$50|
|$16 Monthly account fee||$192|
|Total per employee pay fees = (5 X 0.99 + 5 X 1.99) X 52 weeks||$774.8|
|Approximate total cost for the first year:||$1016.8|
iPayroll when used like Thankyou Payroll
|$50 set up fee||$50|
|$10 per employee set up fee (x 10)||$100|
|$7.75 per week account fee||$403.00|
|Total per employee pay fees = $1.75 x 10 employees x 52 weeks||$910.00|
|Bank fees passed on (low estimate) 0.15 x 10 employees x 52 weeks||$78|
|Approximate total cost for the first year:||$1541|
Thankyou Payroll's two day plan is FREE, but using our most expensive plan (overnight processing) the costs look like this
|No set up fee||$0.00|
|No cost per employee added||$0.00|
|No account fees||$0.00|
|Total per employee pay fees = $0.75 x 10 employees x 52 weeks||$390.00|
|Approximate total cost for the first year:||$390.00|
|OR give $30 per month to the Thankyou Charitable Trust and your fees are $0.00||$0.00|
What’s the difference between the free plan and the 1-day or overnight plans?
The free plan offers all the same features and services that our other plans do but it requires a 2 day processing time. There are no other costs whatsoever involved - no hidden fees at all. After the first month you may cancel as soon as your most recent return period is completed (maximum 1 month). You can switch between the 3 plans we offer week to week.
If I use the free plan (2-day processing) when do I need to transfer the money?
For the free plan we ask that clients transfer the total gross to us 2 days before we transfer it to employees. So, for example 2 days before Thursday night is Tuesday night. So transferring to us Tuesday night the money appears into our account Wednesday and into your employees’ accounts Friday.
Is there a limit to the number of employees/contractors you'd process for free (i.e. that is subsidised by IRD)?
Our service is free for any client that qualifies for the IRD payroll subsidy. To do so they must pay less than $500,000 per year in PAYE and ESCT combined. This roughly equates to 50 full time employees earning the average full time wage but it also could be 100+ part time staff. Our service would be free in either case. Please use our tool on the plans and pricing page to see if you're eligible.
What you have to do
What would I have to do each pay period to process my payroll and pay my staff?
The process each period is: Enter hours into a timesheet -> transfer the total displayed on the dashboard page to us -> we transfer net pay to your employees and their tax obligations to the IRD. We file IR345s and IR348s. We email pay slips (see an example). We monitor leave allowances and payroll giving and more.
What leave facilities are covered?
Thankyou Payroll handles Annual Leave, Sick Leave, Alternative Leave (in Lieu), Bereavement Leave, Public Holidays. It keeps track of all leave type balances, including Annual Leave as required by New Zealand legislation.
Do you also generate pay slips for our employees? - or do we still have to do it ourselves?
We do generate pay slips and they are emailed individually to each employee and also as a combined PDF to the contact email address on the account. (see an example)
You can also upload your logo, that will show in the top left corner of your employee playslips
What do I still need to do with IRD as far as payroll is concerned?
Currently all our clients need to do is submit forms relating to Kiwisaver and Fringe Benefit tax.
How quickly can I get technical support?
Our 0800 phone number is open 10am to 5pm Monday to Friday. We also respond to email throughout the day.
What happens if the pay doesn't go through?
In the unlikely event of any issue to do with paying your employee(s) through Thankyou Payroll contact our staff immediately and we will work through the problem 0800 895 146.
What if my internet goes down?
If your internet goes down the simplest solution is to find another way to access the internet somewhere nearby. You can access your secure login from any computer connected to the internet. Your payroll can also be managed from most internet enabled smart phones. If you do not have access to any other means of accessing your account call us on 0800 895 146.
What if I make a mistake in processing pays, and realize afterwards?
Don't worry everyone makes the odd mistake! Just give us a call 0800 895 146 and we'll get it sorted.
I think TYP has calculated my tax incorrectly.
The tax system is a complex beast. Thankyou Payroll is up to date with all New Zealand tax legislation and mistakes are rare. But feel free to check with the IRD's own online calculator.
How secure is the system? What if someone hacks into it?
Our system is extremely secure. All of your payroll data is encrypted and stored at secure locations.
How do I know that Thankyou Payroll isn't going to disappear overnight?
We are now a well established accredited payroll intermediary and we are growing steadily. We are a capable, dedicated and motivated New Zealand business, just like you and we’re in it for the long haul. We're constantly working on improvements to our service and welcome feedback -good and bad- about how we could make your life easier and our business better.
What security do we get that you will pay IRD and our employees with the money sent to you? Is there a contract drawn up?
All employee wages pass through daily audited client only accounts. Any misuse of this money, which is never at any point legally ours, would be a criminal offence. Once you sign up we ask that you complete an IR920 which informs the IRD that we are managing your payroll. It then becomes our responsibility to make sure your employees tax obligations are met once they are passed to our client accounts. The IRD can revoke our accreditation and make us liable for money owing if they find we are not accurately completing this task or they discover we are inappropriately using client money in any way. We understand that we will, in some cases, be handling large amounts of client money and there will be clients that will be understandably nervous about this. We are fully insured and intend to be in business for many years.