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Walkthrough_Employee Setup

Thankyou Payroll

Created on June 23, 2025

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Transcript

Employee Setup Walkthrough

Employee Information Preparation

Employee Profile

Pay Types

Standard Pay

KiwiSaver & Child Support

History

Leave

Payroll Giving

Contact

Fines & Payments

Click on the setup tab to investigate.

Home

Employee Information Preparation

You will need the following information at hand to set up the employee:

  • First and Last Name
  • Email Address for Payslips
  • IRD Number

Employee's Personal Information

  • Tax Code
  • Bank Account Number
  • Name on Bank Account
  • Payroll Giving Info if Selected

Employee's Banking Information

  • Start Date
  • Pay Rate & Remuneration Info
  • KiwiSaver Info:
    • KS2 & Contribution Rate

Employee's Pay Package Information

  • Agreed Leave Method. If you are unsure, please contact Employment New Zealand for assistance

Home

Employee Profile Tab

Enter all your employees' basic details in this tab. Please double-check the spelling of names, as this has to correlate with IRD and bank accounts.

Standard Pay Tab

Home

Enter the information for the employee's regular pay, such as their pay rate, Tax code and setting their regular work pattern.

Setting Employee Work Pattern

Completing: Special Student Loan Section

Monthly Salary Setup

4-Weekly Pay Setup

Standard Pay Tab

Home

Back

Pay Types Tab

Home

In timesheets, pay types indicate and identify the different components of an employee's pay. Luckily, we have pre-loaded and formulated most of the common standard pay types already. Please use these where possible.

However, if you want to create a unique allowance or deduction that fall outside the standard pay types, use this tab to create your own custom pay types.

System Pre-Loaded Pay Types

Home

KiwiSaver & Child Support Tab

The KiwiSaver contribution rate boxes can either have a rate added to them, OR left blank. The boxes cannot have a zero (0) in them.

Setting Up KiwiSaver for under 18/over 65

KiwiSaver Opt Out and Need To Knows

Super Complying Fund Setup

Home

KiwiSaver & Child Support Tab

Back

Home

Leave Tab

The Leave Settings Tab is one of the most critical sections of information to be completed. The selections and information input here form the basis for leave calculations and leave liability for your employee.

If you have any doubts about the information you need to enter here, or the setting to select, please contact our friendly customer support team so they can guide you through this tab.

Contact Employment New Zealand if you have questions about the employee agreement type or entitlements on 0800 209020.

Please use the following Help Articles to complete each section in this tab:

Leave Settings Tab Walkthrough

System-Recommended Settings

Annual Leave Setting Additional Information

Explaining How Annual Leave Works

Annual Closedown Setup

Help: Calculating Existing Leave Balances

Pay History Tab

Home

If you are employing someone for the first time, they will not have pay history with your business, so leave this tab empty and move on to the next tab.

When bringing an existing employee over to our system, you can enter their previous pay history here so their leave will calculate correctly.

You can leave this tab blank for a Casual Employee. As casual employees receive their leave paid out in each pay as PAYG, their leave liability should be 0, and unless their leave setting changes, their pay history does not affect their leave calculations.

Please use the following Help Article to complete this tab:

Entering Previous Pay History

Home

Contact Tab

The contact tab can be used for internal or organisational reference. Complete as needed.

Home

Fines & Payments Tab

Ministry of Justice Fines Payments - ONLY

Thankyou Payroll manages payments for Ministry of Justice fines.

Information on paying ANY OTHER fine

Information on Ministry of Justice Fines

Splitting Pay to Alternative Personal Accounts - ONLY

Thankyou Payroll manages payments for Ministry of Justice fines.

Information on Splitting Pay

Payroll Giving Tab

Home

Payroll Giving is optional, but if your employee wishes to donate to a favourite cause or charity, then it's as simple as typing in the name of the charity and selecting it from the list. Let's take a look:

Information on Payroll Giving

Learn more about payroll giving (and how awesome it is) from this article.

This is

The Pay Rate as per

Employment Agreement

Fill in the employee's pay rate as per their employment agreement in this field.

For a walkthrough on how to complete this section per employment type, follow this link. It will take you to an article with examples.

This is where you create

Non-taxable Custom

Pay Types

Use this area to set up after-tax custom pay types:

  • after-tax allowances & reimbursements
  • after-tax deductions
  • to add information to the payslip, such as date of birth
  • payments that do not become part of Gross

Go to Help Article with examples

This is

The Employer

Contribution to the Employee's KiwiSaver

Fill in the employer's contribution rate in this field.

The employer contribution rate is usually stated in a policy or the employment agreement. The minimum rate is 3%.

If the employee has opted out of KiwiSaver, leave this field blank. Do not enter a 0 in this field.

This is

The Employee's

Anonymous Setting

Select 'Yes' if the employee wishes to donate anonymously.Select 'No' if the employee wishes to have their name attached to their donation.

This is

The Employee's

KiwiSaver Contribution

Fill in the employee's chosen KiwiSaver Contribution rate as per their KS2 form in this field.

The employee may choose to contribute either 3%, 4%, 6%, 8%, or 10% of their income to their KiwiSaver in every pay.

If the employee has opted out of KiwiSaver, leave this field blank. Do not enter a 0 in this field.

This is

The Employee's

Bank Account Details

Fill in the employee's bank account details in this field.

4 numbers

7 numbers

2 or 3 numbers

2 numbers

The bank account should be held in the employee's name.

This is a required field. The employee's pay will be deposited into this bank account.

This is

The Employee's

Work Pattern Hours

Fill in the employee's standard number of hours worked for each day in this field. If they work variable hours, fill in the MOST hours the employee could work on a day.

This information is used by the system when determining otherwise working days as well as the number the hours per day that are considered a full day for this employee.

This is important as the system uses this field to determine the day size for leave settings.

This is

The Pay Type's

Name

Type a name here that is recognisable in a payslip to ensure clarity.

You have a limited number of characters, so be concise. Use inter-capitalisation to shorten your text.e.g. 'WeatherAllown' instead of 'weather allowance'

This is

The Employee's

IRD Number

Fill in the employee's IRD number in this field.

The employee IRD number is required for PAYE and other information such as deductions. Make sure that this number is entered correctly.

This is a required field as the system will not create a profile without this.

Follow this link to see what to enter here if your employee's IRD number is still pending.

This is

The Employee's

Ministry of Justice Fine

Fill in the employee's details of the MOJ fine and repayments in these fields.

Thankyou Payroll can manage payments for the Ministry of Justice.This is an automated payment, so there is no need to add this payment to a timesheet. The pay summary will automatically show the payment deducted and the balance owing.

Only include MOJ fines in this area. If you use this for other payments, the money could disappear without tracking data.

This is where you

Update and Save

Click this (+) button to update this information.

Please Note: This tab doesn't have a 'save' function. Pressing the (+) IS the SAVE.

This is

The Employee's List

of Saved Payments to the Ministry of Justice

Select add/update payments to edit this list.

Saved payments to the Ministry of Justice will show in this area.

This is

The Employee's

Super-Complying Fund Information

If your employee doesn't use KiwiSaver, use this field to enter the details of the fund they use.

This section is completed only if your employee has a different superannuation fund that they pay into.*Remember: ESCT is also paid on this employer contribution

This area is optional, although it has red asterisks. Please leave blank if not applicable to your employee.

This is

The Employee's

Start Date

Fill in the employee's start date in this field.

For the start date, DO NOT fill in a date in the future.Leave will be linked to the employee's start date, so this date is very important.

Do not update or change this date after a first pay has run. If this date needs to be changed, contact our Help Desk.

This is where you

Delete a Custom Pay Type

Click this (-) button to remove a custom pay type.

Deleting the custom pay type makes it unavailable to use going forward.*However, the history of this pay type use will still be available in Quick Reports. This pay type will show up for selection in the report.

This is

The Advanced Settings

for Employer Contributions

Select the option for how employer contributions to KiwiSaver will be treated, according to the employment agreement.

If your employment agreement states that employer KiwiSaver contributions are included in gross wages, select the appropriate option.

The default setting is that employer KiwiSaver contributions are not treated as wages.

This is the

Timesheet Calculation Value of the Rate

Select what the calculation should be based on: per unit| per hour | per day| per week | per year. This will differ depending on the type of custom pay you are creating.

If you are unsure, set to calculate per unit.

This is

The Employee's

Email Address

Fill in the employee's email address in this field.

Although the email address is not a required field, we strongly suggest filling this in to facilitate communication.

This is where the employee's payslips will be sent, so keep this updated.

*If you are using the Payroll Portal, this is where the secure invite link will be sent.

This is

The Employee's

Tax Code

Fill in the employee's tax code as declared in their IR330 Form in this field.

If advised by Inland Revenue to update the tax code, this is where you update the code. Simply select the new code from the dropdown menu and save the profile.

If the employee has not completed their IR330 form, you will have to use the Non-disclosure Code (ND) until this is done.

This is

The Employee's Split

of Funds Option

Use this field to split funds to other bank account details the employee owns.

If the employee wishes to split his pay, please note the following:

  • This account MUST be the employee's personal account.
  • This payment will be done AFTER tax.
  • The split will not show on their payslip.

This should ONLY be used to split funds between accounts the employee owns.

This is

The Value of the Rate

Set the Rate for calculations here.

Allowance & Payment Rate*enter a 1 here, (positive)then enter the amount in the timesheet.

Deduction Rate*enter a -1 here, (negative)then enter the amount in the timesheet.

For clarity and future-proofing, it is best practice to set the rate at 1 or -1, and then enter the amount in the timesheet. When the amount changes, you don't have to create a new pay type. Alternatively, you can also enter the amount in the Rate section and put a 1/-1 in the timesheet.

This is where you create

Taxed Custom

Pay Types

Use this area to set up taxable custom pay types. That means the PAYE will be calculated on these, as they are included in the regular income. Here are some examples:

  • different pay rates and job codes
  • lump sum payments & bonuses
  • taxable allowances - taxed as part of Gross
  • taxable deductions - taxed as part of Gross

Go to Help Article with examples

This is

The Registered

Charity List

Select the charity the employee wishes to donate to from this list.

Simply start typing and the list will appear in alphabetical order.If the charity you are looking for does not come up, they are not registered with us. Send Thankyou Payroll an email with the charity's details and we will check if we can add them to the system.

This is

The Employer's

ESCT Rate

Select the ESCT rate based on your employee's TOTAL projected annual income from ALL earnings.

ESCT, or Employer Superannuation Contribution Tax, is tax paid by the employer on their percentage of employer contributions to KiwiSaver and/or complying superannuation funds.

This rate is based on the employee's total projected annual earnings from ALL sources. Check with the employee if they have other income sources.

This is where you

Update and Save

Click this (Update) button to update this information.

Please Note: This tab doesn't have a 'save' function. Pressing the (Update) IS the SAVE.

This is

The GST Number

for Contractors

If you are setting up a contractor in the system, fill in their GST number in this field.

Regular employees are not GST registered. This information is only for contractors who are registered for GST. For more information about setting up a contractor in the system, follow this link.

For a regular employee, leave this box blank.

This is

The Internal

Tracking Details

Fill in specific tracking details to help your payroll allocate transactions to specific accounts/budgets in this field.

Use this area to assign transactions to specific areas/budgets by entering job codes for example.

This is an optional field. If you do not use tracking, simply leave this field blank and move on.

This is the

Section

Tracking Codes

Enter the Tracking Codes this pay type must be tracked against.

Using tracking codes is helpful for reporting and Xero integration purposes.Follow this link to find out how Tracking Categories and Job Codes work.

This is an optional step. If you don't use tracking, simply leave this section blank.

This is

The Employee's

Student Loan Extras

Fill in the employee's extra payments on their student loan in this field.

Paying off a student loan at the specified rate is done via the tax code. To find out more about student loan tax codes, follow this link to our How To article.

This is an optional field. Only complete this if the employee wants to make EXTRA payments on their student loan.

This is

The Employee's

Name and Surname

Fill in the employee's names as attached to their IRD number in this field.

It is advised to use the employee's full legal name so that their information can easily be identified. Think about whether you will be able to correctly remember a nickname if payroll information is required 7 years down the line.

This is the name that will appear on the employee's payslip.

*Follow this link to setting up an Under 20-year-old employee in the system

This is where you

Update and Save

Click this (+) button to update this information.

Please Note: This tab doesn't have a 'save' function. Pressing the (+) IS the SAVE.

This is

The Employee's List

of Saved Charities Currently Donating to

Other causes the employee is currently donating to will show in this area, with their donation contribution displayed behind the charity name.

This is

The Employee's

Child Support Contribution

Fill in the rate as stated in the Child Support Notice - CS503. Do not include the $ symbol.

There can be some variation in child support notices, so read them closely. You may need to calculate the amount per week if the notice gives an amount for a longer period than your pay schedule. Any child support payments will be paid to IRD when we process your filing.

Child support contribution rates should only be added or changed upon receiving a Child Support Notice (CS503) from the IRD.

This is

The Employee's

Donation Amount

Enter the amount to be donated from EVERY Pay.

The amount entered here will be deducted from every pay, so if the employee wishes to only donate once they will not be able to use this function.

This donation amount is PER PAY, and not per week or month.

This is

The Employee's List

of Saved Personal Accounts

Select add/update payments to edit this list.

Active split pays to these accounts are shown in this area until the target is reached.

This is where you

Create a New Pay Type

Click this (+) button to create a new pay types field, so you can set up this custom pay type.

Be sure to create this new field in the section you want:

  • Normal (taxed), or
  • Non-taxable
The section heading matters, as it dictates the pay type tax calculation.

This is

The Employee's

Payslip Format Options

Select YES in this field to show pay types and pay rates on the employee's payslip.

We recommend selecting to show rates as this will also show you at which rate annual leave was paid out under the Notes section of the Timesheet Costing Screen.

Selecting to show rates will simplify your leave and time record-keeping.

What can I use this for?

These could be allowances and deductions such as phone bills, accommodation, tools, and food for example. To find out more about taxable and non-taxable allowances, visit the IRD website.

You could use this tab to set up pay types for back pay, correction pay, bonuses, and other pay rates (for different portfolios/jobs). Use this Help Article to find out more and view extra examples:

Go to Help Article with examples