IT Brief New Zealand logo
Technology news for New Zealand's largest enterprises
Story image

Innovations in Payroll

Fri 5 Oct 2012
FYI, this story is more than a year old

Kevin Murphy examines innovation in payroll processing and how the payroll industry has kept pace with changes in IT while continuing to add value to clients.

Businesses of all sizes are switching to cloud payroll applications for compelling reasons, and payroll applications are becoming ever more sophisticated to help businesses reduce their costs while improving the productivity of employees.

Outcomes such as the reduction of “leave leakage”, the identification of key staff with “flight risk”, visibility of employee work patterns and remuneration trends can all have a major impact on an organisation’s bottom line.

Payroll applications are particularly suitable for cloud delivery for a number of reasons. Firstly payroll calculations are constantly changing as a result of changing legislation. The consequent upgrades, cost, inconvenience and risks cannot be avoided, but in the cloud these are all undertaken invisibly in the background by the supplier, allowing you to focus on your business.

Recent events have shown the importance of effective disaster recovery plans to New Zealand businesses. Payroll is a critical function and few organisations have effective disaster recovery plans in place for legacy payroll systems. Moving to a cloud payroll application from a supplier who has good disaster recovery systems and plans in place can therefore eliminate a significant risk.

Payroll data is unusually sensitive and confidential and yet in many cases it is stored on readily accessible computers or parts of the company’s network. Companies are also moving to cloud payroll solutions to move this data out of their offices and off their network into a secure data center.

Like other applications using the cloud model, cloud based payroll applications are available on a simple “pay as you go” billing scheme. You pay for what you need and get a highly scalable system without the capital outlay. Flexible contract terms don’t inhibit this scalability and often include no commitment to a minimum term.

This flexibility means that you can easily move on to another system if it is not effectively working for you… as long as you can export your data from your cloud provider into a format that can be imported into your new system.

The new breed of cloud payroll applications also brings many other benefits. A simple example is the availability of self-service portals for staff which enable them to view or download payslips, check leave balances and apply for leave, and to update their personal details themselves.

All of which can be done at work or at home. These self-service portals with automated routing of leave applications help reduce “leave leakage”, which concerns many organisations today.

The New Zealand Government has also realised the benefits of cloud based applications, especially for small businesses that might otherwise be doing calculations incorrectly. Users of approved cloud based payroll applications that automatically calculate PAYE correctly AND submit it on time to IRD qualify for a subsidy for their first five employees.

The government’s objective is to allow such small businesses to focus on building their business and not payroll compliance and employee tax payments.

Payroll data also contains a significant amount of useful information about the staff of an organisation, for example exit patterns, gender and age diversity, leave patterns, etc. New payroll applications include easy to use drag-and-drop report writers to provide access to this information. Sophisticated products can also provide dashboards for managers that provide a graphical view of key information.

Remember that the payroll database will be the most accurate database of your employees at any time and so it is useful if the payroll application can be extended to hold other employee information (e.g. assets in the care of the employee, work permit status, certification status).

New payroll applications will have extensible databases which allow you to store and manage employee information that is relevant to your business.

The current trend is for new businesses to use a simple and low cost cloud payroll application during start up. These facilitate compliance for minimal effort, allowing a business to focus on growth. Medium sized businesses have more complex payroll requirements, usually requiring a payroll professional.

Rather than hiring their own pay clerk, most medium sized companies are choosing an outsourced payroll service. Larger companies can realise efficiencies by bringing payroll in house and using one of the new generation of payroll applications.

The trend of businesses moving their payroll onto cloud applications is accelerating for a range of compelling reasons and payroll software companies are continuing to develop clever cloud solutions. At the same time, the new payroll applications are leveraging the value of information within their databases and this can provide tangible benefits to businesses, including higher productivity.

Kevin Murphy is the CEO of Datacom PaySystems. Datacom has been a supplier of outsourced payroll services for over forty years and is New Zealand’s largest software developer. Datacom offers cloud payroll applications for large and small businesses.

Related stories
Top stories
Story image
Artificial Intelligence
Is your chatbot bringing down the customer satisfaction score?
The top 10 reasons why chatbots are failing to meet customer expectations and what you must do to avoid that.
Story image
Tech job moves
Tech job moves - Fastly, INX, Kinly, SmartBear & Vectra AI
We round up all job appointments from July 29 - August 12, 2022, in one place to keep you updated with the latest from across the tech industries.
Story image
InternetNZ
How well do rangatahi understand cyber safety in Aotearoa?
Do rangatahi in Aotearoa understand the importance of being safe online, or has lifelong exposure to the internet resulted in widespread complacency?
Story image
Data Protection
Advancing genomic sequencing and public health with digital infrastructures 
Right before our eyes, we've witnessed the development of the COVID-19 vaccine in record time. An enormous achievement in an otherwise lengthy task that previously took, on average, 10-15 years.
Story image
Data analytics
Pressure on orgs to up their data analytics game - study
A recent report from Sisense highlights data transmission, analysis, and risk management remain top concerns for data professionals in APAC.
Story image
Artificial Intelligence
Gartner unveils key emerging tech to watch in 2022
"Such technologies present greater risks for deployment, but potentially greater benefits for early adopters," says Gartner.
Story image
Firewall
Why printing security plays a vital part in keeping Aotearoa safe
While internet printing, mobile printing and other similar technologies have no doubt made things easier to manage, it has also brought a whole new set of problems to the table.
Story image
Servers
New Zealand cloud provider challenges Google's claims on data control for region
A Wellington cloud services provider says Google's claim it will offer New Zealanders complete control over their own data is not true.
Story image
Gartner Magic Quadrant
Gartner names Lookout a Visionary in 2022 Magic Quadrant
Gartner has recognised Lookout as a Visionary in the 2022 Magic Quadrant for Security Service Edge (SSE) and one of the top three offerings in the 2022 Gartner Critical Capabilities for SSE report.
Story image
Charity
SnapLogic teams up with meetmagic for charity and children
SnapLogic has announced its partnership with meetmagic, an online Australian platform that combines business and philanthropy.
Story image
Developers
Snyk announces plans to expand partner network in APJ
Recognising that partnerships are critical for growth, Snyk is building an entire partner ecosystem that will drive its expansion across APJ.
AWS Marketplace
Learn how security orchestration, automation, and response (SOAR) enhances your security strategy.
Link image
Story image
IDC
High level of Customer Identity & Access Management adoption
The study from Okta revealed that the pandemic has either accelerated or highlighted the need for digital-first strategies.
Story image
Distribution
Garmin expands NZ footprint with new Auckland distribution centre
The facility at Goodman’s Highbrook Business Park will be fully operational from October 2022 and features 3,586sqm of warehouse space.
Story image
Infrastructure
IBM expands Power10 server line for business modernisation
IBM has recently announced a significant expansion of its Power10 server line with the introduction of mid-range and scale-out systems.
Story image
Cybersecurity
Education sector seeing highest volumes of cyber attacks
When breaking down the numbers to education attacks by region in July 2022, A/NZ was the most heavily attacked.
Story image
Sustainability
NZ program recovers and recycles more than 177 tonnes of e-waste
The TechCollect NZ pilot program says its milestone of recovering and recycling more than 177 tonnes of ICT e-waste recognises the efforts of many.
Story image
Malware
Avast One extends protection with Online Safety Score
Avast One has extended its cross-platform support by adding its Online Safety Score feature to both the Mac and iOS platforms of Avast One.
Story image
Surveillance
Ministry will no longer accept equipment from Chinese firm Hikvision
The Ministry of Business, Innovation and Employment (MBIE) says it will no longer accept equipment from a major Chinese surveillance camera maker.
Story image
Application Performance Monitoring / APM
New Relic integrates offering with Atlassian’s Jira Software
New Relic has integrated errors inbox with Jira Software to allow developers to easily access and set up complete stack error tracking and software performance monitoring from within the tool.
Story image
SaaS
Exclusive: The Access Group shares the benefits of embracing SaaS
In today's rapidly changing working environments, efficiency and productivity are surefire ways to create business growth and success.
Story image
Data Protection
VMware introduces advanced workload protection for AWS
VMware Carbon Black Workload for AWS delivers comprehensive visibility and security across on-premises and cloud environments for AWS customers.
Story image
Red Hat
Red Hat announces 2022 awards winners for A/NZ region
Red Hat recently acknowledged Australia and New Zealand partners with its annual awards, highlighting partners across various categories.
Story image
Google Cloud
Google Cloud to open first cloud region in NZ - among others
Google Cloud has announced plans to bring three new cloud regions, one each in New Zealand, Malaysia and Thailand.
Story image
Privileged Access Management / PAM
The importance of stopping identity sprawl for cybersecurity
The 2021 Data Breach Investigations Report (DBIR) shows that 61% of all breaches involve malicious actors gaining unauthorised, privileged access to data by using a compromised credential. Unfortunately, it is often too late when the misuse of a credential is detected.
Story image
Enterprise Resource Planning / ERP
Why the right ERP (and partner) is crucial to an innovative and successful business
Enterprise Resource Planning (ERP) is a foundational step to ensuring a robust business model; here's why choosing the right one could be vital to ensuring long-term success and innovative results.
Story image
Augmented Reality
TeamViewer remote access software integrated into RealWear Cloud
TeamViewer has announced a major expansion of its partnership with RealWear, a leading provider of assisted reality wearable solutions for frontline industrial workers. 
Story image
Hybrid Cloud
The essential guide to digital transformation by SolarWinds
Digital transformation is a buzzword thrown around all the time by companies, but what does it actually mean and why is it important? SolarWinds breaks it down.
Story image
Cybersecurity
Datacom research explores reality of zero trust in A/NZ
Zero trust is fast emerging as global best practice in cybersecurity and local leaders are on board, with 83% considering it essential to security.
Story image
VMware
Latest VMware threat report reveals truth about deepfakes
"Cyber criminals have evolved. Their new goal is to use deepfake technology to compromise organisations and gain access to their environment."
Story image
Dark web
Beware the darkverse and its cyber-physical threats
A darkverse of criminality hidden from law enforcement could quickly evolve to fuel a new industry of metaverse-related cybercrime.
Story image
Compliance
Why security needs to shape your journey to the cloud
It's estimated that 80% of workloads could be in the cloud in the next few years. How can you make all that data secure?
Story image
Cybersecurity
Palo Alto Networks responds to rise in threats with MDR service
Unit 42 Managed Detection and Response is a new service that can offer continuous 24/7 threat detection, investigation and response.
Story image
SaaS
Cloud and data protection big challenges for NZ businesses
"This surge towards a cloud-first approach meant security and safety became afterthoughts - there's no point being the fastest car on the racetrack if you crash.”
Story image
Indusface
Why enhancing bot protection for web and API endpoints matters
The trouble with bots is that they aren’t all bad. Unfortunately, this can make it challenging to detect malicious bots that find their way into your system and threaten your business.
Story image
Artificial Intelligence
Exclusive: NZ-based DEFEND offers global cyber protection
DEFEND supports customers in 66 countries across the globe with a relentless focus on ensuring that every dollar spent on security provides a meaningful return on investment and reduces cyber risk.
Story image
Data analytics
Data analytics a struggle for A/NZ healthcare organisations
A study by InterSystems has found that most Australian and New Zealand healthcare organisations struggle to use data analytics to support their business objectives.
Story image
Cyber attacks
Dramatic uptick in threat activity with exploits growing nearly 150%
"While it’s not a surprise given increased attack opportunities like remote work, it’s still a worrying development and one we cannot ignore."
Story image
Dicker Data
Dicker Data brought on as Acronis partner for A/NZ
The news about the partnership comes in as cyber criminals continue to exploit gaps in traditional solutions and strategies in NZ and across the APAC region.
Story image
Ingram Micro
Ingram Micro NZ sees $74 million revenue growth in 2021
Ingram Micro New Zealand's latest financial report reveals that its revenue from contracts with customers increased by almost $74 million in 2021.
Story image
ExtraHop
Organisations exposing highly sensitive protocols to public internet
More than 60% of organisations expose remote control protocol SSH to the public internet, while 36% of organisations expose the insecure FTP protocol.