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Setup and manage employing entities on Payroll classic

James Nixon
Updated
EH Content Team

Available for the following Payroll plans: Standard, Premium, Core Payroll, Unlimited+Payroll
Available for the following user access levels: Admin

As an organisation, you may utilise multiple employing entities that each have a different NZBN and that need customisation options tailored for each entity. By utilising a payroll platform that offers this level of flexibility will enable you to tailor your organisational setup based on each entity, meaning you can view, report and process payroll actions on a per entity basis.

The Additional Employing Entities feature in the payroll platform allows for your organisation, for example, to have the correct pay slip information and logo displayed for your employees regardless of which entity they work under.

Warning

When you HR-Payroll orgs, entities should always be created on the Payroll platform and imported manually to HR. However, when you create an entity on the payroll platform, it does not automatically synchronise with the HR platform. To read information on how to synchronise the changes made on the payroll platform with the HR platform, refer to the following article.

Bank Accounts, Pay Schedules & PayDay Filing: For Payday Filing to be reported to the IRD for each organisation separately, a separate pay schedule will need to be created and processed for each entity. Each pay schedule/pay run can only have 1 bank account in the payment file.

Getting started

What are Additional Employing Entities?

In Employment Hero, an additional employing entity refers to a separate business or NZBN that operates under the same payroll file.

Key Things to Know About Additional Employing Entities

  • Report Filters: Most reports allow you to filter by employing entity.
  • Employee Assignments: An employee cannot be employed by two entities within the same pay period.
  • Journals: Only one pay run journal is generated per pay run. For separate journals, run separate pay runs.
  • IRD Settings: IRD settings must be configured for all NZBNs involved. If operating as an intermediary, the employer must complete an IR920 Employer Linking to Payroll Intermediary form for each NZBN to authorise the intermediary to act on their behalf.
Add an employing entity
  1. Click the Business Settings menu.
  2. Click the Payroll Settings submenu.
  3. Click the Additional Employing Entities button.
  4. Click the Manage Employing Entities tab.
  5. Click the Add button.
    Add button (1).jpg
  6. Complete the following fields: Name, NZBN, IRD Number, Employer payment frequency, Address details, Contact Name, Contact Phone, Contact Email Address, and Pay Slip Notification Email Address.
  7. Click the Save button.
Add an employing entity logo
  1. Navigate to the Manage Employing Entities tab as described above.
  2. Click the Employing Entity that needs a logo added.
    Example name.jpg
  3. Click the Choose a Logo button and select your file.
    Add logo.jpg
  4. You will now see the uploaded logo on your screen.

IRD Configuration & Payday Filing

Helpful Hint

The IRD number and contact details entered here relate to the default entity as per the business details page. You will select here if you are lodging as the Employer or Intermediary under this section for ALL entities, as well as selecting the PayDay Filing Method for ALL entities.

Setting up IRD Settings as the Employer

Select this option if the employer is submitting PAYE and reporting responsibilities to the IRD and not using a third party.

  1. Review Business Details for accuracy so these can be populated into the IRD Settings page. Navigate to Business > Payroll Settings > Details. Amend any fields with incorrect or missing information and click Save.
  2. Navigate to Business > Payroll Settings > IRD Settings.
  3. Select “the Employer”.
  4. Click Copy From Business Settings to populate fields from your main business profile.
  5. Select a Payday Filing Method:
  6. Select Employer deductions payment frequency:
    • Monthly – For employers with less than $500,000 PAYE (including ESCT) in the previous tax year. The IR345 deduction frequency will be monthly and due on the 20th of the following month.
    • Twice Monthly – For employers with $500,000 PAYE (including ESCT) or more in the previous tax year. For the first half of the month (1st to the 15th), the IR345 is due on the 20th of the same month. For the second half of the month (16th to the end of the month), the IR345 is due on the 5th of the following month.
  7. Click Save.

Helpful Hint

You must submit a Payday Filing – Employee Details report BEFORE the Live Pay Run is created or finalised.

Setting up IRD Settings as an Intermediary

Select this option if you are an outsourced company completing payroll on behalf of the employers. You will then be asked to enter the intermediary’s unique 8 or 9 digit IRD number. The employer will need to complete an IR920 Employer Linking to Payroll Intermediary form to provide authority for the intermediary to act on their behalf and submit PAYE and reporting responsibilities to the IRD.

  1. Review Business Details for accuracy so these can be populated into the IRD Settings page. Navigate to Business > Payroll Settings > Details. Amend any fields with incorrect or missing information and click Save.
  2. Navigate to Business > Payroll Settings > IRD Settings.
  3. Select “an Intermediary”.
  4. Click Copy From Business Settings to populate fields from your main business profile.
  5. Enter any missing and required information, including the intermediary’s unique 8 or 9 digit IRD number, contact first name, contact last name, contact phone, and contact email.
  6. Select a Payday Filing Method:
  7. Select Employer deductions payment frequency:
    • Monthly – For employers with less than $500,000 PAYE (including ESCT) in the previous tax year. The IR345 deduction frequency will be monthly and due on the 20th of the following month.
    • Twice Monthly – For employers with $500,000 PAYE (including ESCT) or more in the previous tax year. For the first half of the month (1st to the 15th), the IR345 is due on the 20th of the same month. For the second half of the month (16th to the end of the month), the IR345 is due on the 5th of the following month.
  8. Click Save.

Helpful Hint

You must submit a Payday Filing – Employee Details report BEFORE the Live Pay Run is created or finalised.

Maintain

Edit an Employing Entity

To edit an Employing entity:

  1. Click the Business Settings menu.
  2. Click the Payroll Settings submenu.
  3. Click the Additional Employing Entities button.
  4. Click the Manage Employing Entities tab.
  5. Click the Employing Entity that needs editing.
    Example name.jpg
  6. Make the changes to the available fields.
  7. Click Save.
Delete an Employing Entity

Warning

Deletion is only allowed if no employee assigned to that entity has received payment in a pay run.

  1. Click the Business Settings menu.
  2. Click the Payroll Settings submenu.
  3. Click the Additional Employing Entities button.
  4. Click the Manage Employing Entities tab.
  5. Hover over the entity that needs deleting. 
  6. Click the X that appears on the right hand side.
    X cross.jpg
  7. Click OK.
Restore a deleted employing entity
  1. Click Business Settings, then Payroll Settings.
  2. Click Restore Deleted Items in the menu.
  3. Click the Deleted Items button.
  4. Select Restore Employing Entities from the Restore Business Category drop-down.
    Employing entity.jpg
  5. Click Restore next to the entity and confirm.

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