This component enables you to run payroll for all employees in accordance with legal and business requirements.

The Payroll New Zealand component should be implemented in cooperation with the project team implementing other areas of SAP Human Resources (HR), in particular Personnel Administration.

The Payroll component for New Zealand forms an integral part of the Human Resources component and is therefore closely linked with R/3 Time Management. It is also fully integrated with other R/3 modules, such as Financial Accounting and Controlling. You can run payroll using a combination of SAP and third-party products.

The SAP Payroll component enables you to carry out gross and net calculations. It provides all the functions necessary to:

• Calculate tax on income (PAYE), bonuses, retirement and redundancy payments and leave payments
• Calculate student loan and child support deductions
• Calculate employee and employer contributions to superannuation funds
• Calculate employee and employer earnings liable for Accident Compensation (ACC)
• Pay an employee in advance
• Perform a payroll run outside the usual schedule
• Calculate payments and tax on termination
• Process leave accruals and calculate payments
• Recalculate payroll automatically following a change in an employee's pay details
• Create Employee Monthly Schedules and Remittance Certificates for delivery to the Inland Revenue Department (IRD)
• Report on numerous aspects of payroll, such as contributions to superannuation and ACC