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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 ABN 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.

Whilst you can process a single pay run with employees from multiple entities, the pay run will still only produce one pay run in a journal. I.e, we will not create a separate journal for each employing entity. To achieve that, you will need to split the pay runs and process separate pay runs for each employing entity.

Bank Accounts & Pay Schedules: Each pay schedule/pay run can only have 1 bank account in the ABA file. If employees in the new entity are to be paid from a specific account, then a separate pay schedule will be required as well.

Getting started

What are Additional Employing Entities?

In Employment Hero, an additional employing entity refers to a separate business or ABN 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.
    Entity_1.jpg
  6. Complete the following fields: Name, ABN, Branch number, Address, Suburb, Contact name, Contact phone, and Signatory name.

  7. Helpful Hint

    Select the "Is this a Foreign (Overseas) Entity" checkbox if reporting for Inbound Assignees via STP.

  8. Click the Save button.
    Entity_2.jpg
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.
    Entity_3_.jpg
  3. Click the Choose a Logo button and select your file.
    Entity_4.jpg
  4. You will now see the uploaded logo on your screen.
    Entity_5.jpg
Add a default super fund
  1. Click the Employing Entity that needs a default super fund added.
    Entity_3_.jpg
  2. Click Add, search for the super fund, and select it.
    Entity_6.jpg
  3. Complete fund phone and website fields and click Save.
    Entity_7.jpg
Enable electronic lodgement
  1. Click the Employing Entity that needs electronic lodgements enabled.
    Entity_3_.jpg
  2. Click the Enable Electronic Lodgement button.
    Entity_8.jpg
  3. Click Confirm.
    Entity_9.jpg
Add a refund bank account

Helpful Hint

You can only have one bank account for each employing entity.

  1. Click the Employing Entity that needs a refund account.
    Entity_3_.jpg
  2. Click Add and enter Account name, BSB, and Account number.
    Entity_17.jpg
  3. Click Save.
    Entity_18.jpg

IRD Configuration & Payday Filing

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 or Delete an Employing Entity

To edit, click the entity name in the Manage Employing Entities tab, make changes, and click Save.
Entity_29.jpg

Warning

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

  1. Click the button next to the entity.
    Delete Button
  2. Click OK.
Restore a deleted employing entity
  1. Click Business Settings Payroll Settings.
  2. Click the Deleted Items button.
  3. Select Employing Entities from the Restore Business Category drop-down.
    Restore Category
  4. Click Restore next to the entity and confirm.
    Restore Button

Watch the training video

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