Adding a Contractor

Adding a contractor to your business is easy with the help of the simplified new employee wizard. Once you have enabled the Contractor Management function within your Advanced Settings, you will be able to create an employee or independent contractor via the new employee wizard. 

To start the new employee wizard, from your dashboard select Add Employee;

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Step 1. Personal Details

The following fields in Personal Details must be completed in order to progress to the next screen:

    1. First Name
    2. Surname
    3. Date of Birth
    4. Residential Address Line 1
    5. Residential City
    6. Email Address, if "Employee Notifications" = Email
    7. Mobile Phone, if "Employee Notifications" = SMS. Mobile number must have a maximum of 11 digits and start with a prefix of '02'.                                                                   
  • The title field is optional.
  • The gender field will auto-populate with 'unspecified' and this can be overridden. 
  • When entering an address, auto-complete suggestions may be presented. To pre-fill an address, click on a suggestion. This will also auto complete the Residential City field. If the suggestions are not adequate or the employee lives overseas you will need to tick the checkbox Enter Residential Address Manually. This will open additional fields and all fields (other than Residential Address Line 2) must be completed. Also note that, outside of Country, all other fields are free text so there will be no validation done to ensure the address is correct.       
  • If the employee's postal address is different to their residential address, deselect the Postal Address is the same as Residential Address checkbox. Additional fields will appear where you can enter the postal address details.                                                                                                       
  • The Employee Notifications setting controls if/how the employee will be notified when new pay slips are available, when leave requests and/or expense requests have been actioned by their manager, rostering notifications and so forth. If you do not want an employee receiving any notifications, select "None". If the option "Manual" is selected, employees will not receive any notifications however payroll will be able to easily view/download pay slips just for 'manual notification' employees so they can then print these pay slips only and issue to the employees. 

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  • The Self-Service setting controls whether the employee will have access to their employee portal (where they can view their pay slips, apply for leave, action shift requests, etc). If you select "Yes", the employee will be sent an email or SMS (depending on their notification setting) with instructions on how to set up their password and log into their portal. 

This screen is also where you select that the employee is working as an independent contractor. The option is listed below the Date of Birth and Gender fields, as shown below. This will be deselected by default and if selected, the remaining steps of the wizard have been simplified to cater specifically for contractors. If this option is left deselected, the regular new employee wizard will apply.

 

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Step 2. Banking

The second step of the wizard only contains the banking details as KiwiSaver is not applicable for independent contractors. 

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Entering the employee's banking details is compulsory.

  • Bank details: There are 3 options of Electronic (via a bank file), Manual deposit or Cash/Cheque.
  • Account Name is auto-filled from the employee's name. You can manually delete the auto-filled account name and enter in the account name as well. 
  • Account Number is 15 or 16 digits which consist of the bank code, account number and suffix. 

 

Step 3.  Employment Details

This section allows the user to configure the pay details for the employee such as rate of pay, pay schedule and primary location.

 

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Start Date: Compulsory field. Select the employee's start date. 

Primary Location: Compulsory field. The primary location value is the location that will be assigned as the employee's default location. If the employee will be working in more than one location you can select multiple locations once you have completed the employee wizard. You can attach more than one location to an employee via the "Locations" screen within their employee details file.

You can also create a new location from the Primary Location field by clicking on '+ Add New' in the drop down. 

Pay Schedule: Compulsory field. Pay Schedule options can be Weekly, Fortnightly, Monthly, Twice Monthly. You can set up your pay schedules via your business pay schedule settings which will then appear in the Employee Wizard to select from. 

Pay Rate: Compulsory fields. If you are paying an employee an annual salary, ensure you enter the annual salary in the Pay Rate field and then change "per Hour" to "per Annum". Similarly for per day pay rate and changing "per Hour" to "per Day".  

Primary Pay Category: Compulsory field. Pay Categories are used to define the rates that employees are paid. Primary default pay category options are generally: Permanent Ordinary Hours, Casual Ordinary Hours, as well as a list of Leave pay categories. You can set up different pay categories based on your company's structure and requirements. 

Leave Allowance Template: Optional field. Leave allowance template defaulted to 'No leave entitlement' for contractors.  Further reading on leave allowance templates can be found here.   

Leave Year Starts: This field will appear where you have selected a Leave Allowance Template that includes the 'Based on employee's leave year setting' and also if you are using the system default leave allowance templates. Leave year start options are 'Employee's start date' or 'A specified date'. Where 'A specified date' is selected, a date picker will appear for you to enter in the correct specified date to ensure accurate calculation of leave entitlements for the employee. If you are using the system default leave allowance templates, you should select 'A specified date' and then enter the date 6 months after the employee's start date. The reason for this is so that Sick Leave and Domestic Violence Leave entitlements hit the employee's leave balance at the correct time. 

Timesheets: Optional field. Timesheet options are 'Do not use timesheets' and 'Use timesheets'. If the employee is not required to submit timesheets in order to get paid and/or are paid their set number of hours by default, select 'Don not use timesheets'. This will then activate the setting for the employee to be paid the number of hours set in their file by default in the pay run.

Once all Employment details have been entered in, click on the 'Next' button to continue to the next step. 

The employment type and ESCT Rate % have been removed as they are not required for independent contractors.

 

Step 4. 

This section is for entering the tax code declaration information for the independent contractor.

 

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IRD Number: This is a compulsory field. Enter in the employee's 9 digit IRD Number.

Tax Code: This is where you will enter WT tax code.

Tax Rate: This is a compulsory field. Enter the tax rate the contractor has provided you, this will be used to calculate the PAYE. 

Date Signed: Optional field. Enter the date the employee signed the Tax Code Declaration form in the Date Signed field.

Once you have completed the details, click on the 'Done' button. 

At this stage, the basic payroll setup for the contractor is complete. The contractor is now able to be included in pay runs.

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There are additional customisation options available once the employee has been added into the system. Click on the '<employee's name> Details' button if additional configuration is required for the contractor, for example:

  • Configuring additional pay rates
  • Configuring and adding in leave allowances
  • Adding additional locations
  • Adding additional bank accounts
  • Setting up deductions or adjustments

 

Importing a Contractor via Excel / CSV

Importing employees, including contractors from a XLSX or CSV file is a great way to get set up and running quickly.
Hint: it is also a handy way to perform bulk updates of employee data

The Import Employees feature can be found in the menu under the "Add Employee" tab:

 

The best way to get started is by exporting the XLSX or CSV template file, adding data to it and then re-importing it. To export the template, click the Export button and then click on the down arrow to choose an Empty Template, then choose whether you want to work with an XLSX or CSV Template:

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This file contains the column headers for the import. You simply need to add a row for each employee that you wish to import.

Once you have finished editing the XLSX or CSV file, you can upload it by clicking on Import > Select File > upload file > Open > Confirm Upload?. The import will then begin.

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 Once the import is complete, a report will be displayed showing you the employees that were created/updated.

 

File Specification

There are quite a few fields in the file however they are broken into sections as shown below and not all sections need to be present.

The most important field when adding a contractor is the Employment Type. This needs to be set on Independent Contractor to correctly configure the employee.

 

Core Data

NOTE: either the IRD Number or First Name+Surname+Date of birth must be present in the file to uniquely identify the employee

Pay Run Setup

Emergency Contacts

Bank Accounts

  • Up to 3 bank accounts may be specified however only 1 is required.
  • Percentages across all bank accounts must total 100
  • Use an Allocated Percentage of 100 on only 1 of the bank accounts to indicate remaining balance. Note in this case percentages across all bank accounts will be greater than 100, and validation will pass if ONLY 1 bank account is allocated 100 percent

Rostering Notifications

Employee Leave Year Setup

This section MUST be completed for any employee who has a leave category setup based on the employee leave year

KiwiSaver

Tax Declaration

Field Name Data Type Notes
EmployeeId Number

This should be kept blank unless you're updating an existing employee in the system. If this is the case, then use the system generated Employee ID. 

N.B. If an external Id is used that has been used before you won't be able to save it if the 'unique external Id' setting is switched on. This setting is located on the Payroll settings > Advanced settings page. See here for more information. 

Title Text Valid values: Mr, Mrs, Miss, Ms, Dr
PreferredName Text  
FirstName Text  
MiddleName Text  
Surname Text  
DateOfBirth Date  
Gender Text Valid values: Male, Female, Unspecified
ExternalId Text Can be the id of the employee used in an external system (eg: HR)
ResidentialStreetAddress Text  
ResidentialAddressLine2 Text  
ResidentialCity Text  
ResidentialRegion Text  
ResidentialPostCode Number  
ResidentialCountry Text This field is compulsory when ResidentialAddressIsManuallyEntered = True 
ResidentialAddressIsManuallyEntered Text Valid values: True, False
PostalStreetAddress Text  
PostalAddressLine2 Text  
PostalCity Text  
PostalRegion Text  
PostalPostCode Number  
PostalCountry Text This field is compulsory when PostalAddressIsManuallyEntered = True 
PostalAddressIsManuallyEntered Text Valid values: True, False
EmailAddress Text  
HomePhone Text Landline phone numbers must contain 9 digits, including the area code. The area codes are:

-03: South Island and the Chatham Islands, including Christchurch, Dunedin, Invercargill, Nelson, Timaru, and Westport.
-04: Wellington region.
-06: Southern and eastern North Island, including Manawatu-Wanganui, Hawkes Bay, Taranaki, Gisborne, New Plymouth, and Palmerston North.
-07: Waikato, The Bay of Plenty, Hamilton, Rotorua, and Tauranga.
-09: Auckland, and the islands of the Hauraki Gulf, Howick, and Northland.


Mobile number must have a maximum of 11 digits and start with a prefix of '02'.

WorkPhone Text Landline phone numbers must contain 9 digits, including the area code. The area codes are:

-03: South Island and the Chatham Islands, including Christchurch, Dunedin, Invercargill, Nelson, Timaru, and Westport.
-04: Wellington region.
-06: Southern and eastern North Island, including Manawatu-Wanganui, Hawkes Bay, Taranaki, Gisborne, New Plymouth, and Palmerston North.
-07: Waikato, The Bay of Plenty, Hamilton, Rotorua, and Tauranga.
-09: Auckland, and the islands of the Hauraki Gulf, Howick, and Northland.

Mobile number must have a maximum of 11 digits and start with a prefix of '02'.

MobilePhone Text Mobile number must have a maximum of 11 digits and start with a prefix of '02'.
StartDate Date  
EndDate Date Date employment was terminated (if employee has finalised their employment)
AnniversaryDate Date eg: the date the employee received their qualifications
Tags Text Pipe (‘|’) separated list of tags to associate with this employee
Field Name Data Type Notes
EmploymentType Text

Independent Contractor should be selected for contractors. This field determines the KiwiSaver and Tax Code declaration settings.

Valid values for regular employees: Full Time, Part Time, Casual

PreviousSurname Text  
JobTitle Text  
PaySchedule Text Corresponds to the name of a Pay Schedule that you have already created. For example ‘Weekly’
PrimaryPayCategory Text Corresponds to the name of a Pay Category that you have already created. For example ‘Permanent Ordinary Hours’
PrimaryLocation Text Corresponds to the fully qualified name of a Location that you have already created. Refer below for details on Fully Qualified Locations.
PaySlipNotificationType Text Valid values: Email, SMS, Manual, None
Rate Number How much is the employee paid (may be specified as a ‘per hour’ or ‘per annum’ value)
RateUnit Text Valid values: Hourly, Annually, Daily
OverrideTemplateRate Text Valid values: True, False. Select True where an employee has been assigned a PayRateTemplate but you want to pay a different base rate of pay.
HoursPerWeek Number Standard number of hours per week for this employee
HoursPerDay Number Standard number of hours per day for this employee
AutomaticallyPayEmployee TrueFalse Determines whether the employee's “standard weekly hours” are automatically added as earnings lines to a new pay run
LeaveTemplate Text Name of the Leave Allowance Template to apply to this employee
PayRateTemplate Text Name of the Pay Rate Template to apply to this employee
PayConditionRuleSet Text Name of the pay condition rule set to assign to this employee
IsEnabledForTimesheets Text Valid values: Enabled, Disabled, EnabledForExceptions
WorkTypes Text Pipe (‘|’) separated list of work types to enable this employee to submit timesheets for
Field Name Data Type Notes
EmergencyContact1_Name Text  
EmergencyContact1_Relationship Text  
EmergencyContact1_Address Text  
EmergencyContact1_ContactNumber Text  
EmergencyContact1_AlternateContactNumber Text  
EmergencyContact2_Name Text  
EmergencyContact2_Relationship Text  
EmergencyContact2_Address Text  
EmergencyContact2_ContactNumber Text  
EmergencyContact2_AlternateContactNumber Text  
Field Name Data Type Notes
BankAccount1_BankCode Text  
BankAccount1_AccountNumber Text  
BankAccount1_AccountName Text  
BankAccount1_AllocatedPercentage Text Use 100 to nominate remaining balance
BankAccount1_FixedAmount Text Percentage or Fixed amount may be specified.
BankAccount2_BankCode Text  
BankAccount2_AccountNumber Text  
BankAccount2_AccountName Text  
BankAccount2_AllocatedPercentage Text Use 100 to nominate remaining balance
BankAccount2_FixedAmount Text Percentage or Fixed amount may be specified.
BankAccount3_BankCode Text  
BankAccount3_AccountNumber Text  
BankAccount3_AccountName Text  
BankAccount3_AllocatedPercentage Text Use 100 to nominate remaining balance
BankAccount3_FixedAmount Text Percentage or Fixed amount may be specified.
Field Name Data Type Notes
RosteringNotificationChoices Text Valid values: Email, SMS, None
Field Name Data Type Notes
LeaveAccrualStartDateType Text Valid values: SpecifiedDate, EmployeeStartDate. If using system default leave allowance templates value should be 'SpecifiedDate'.
LeaveYearStart Date Keep blank unless LeaveAccrualStartDateType = SpecifiedDate. If using system default leave allowance templates value for SpecifiedDate should be 6 mths after the employee start date, ie employee start date is 10/10/18, value should be stated as 10/4/19.
Field Name Data Type Notes
KiwiSaver_EmployeeContribution Number

Not applicable for contractors, leave blank

Valid values for regular employees: 3, 4, 6, 8, 10

KiwiSaver_EmployerContribution Number

Not applicable for contractors, leave blank

Valid values for regular employees: 3 or greater

KiwiSaver_OptOutDate Date

Not applicable for contractors.

Only needed for employees whose KiwiSaver_EnrollmentStatus = OptOut

KiwiSaver_LateOptOutReason Text

Not applicable for contractors.

Only needed for employees whose KiwiSaver_EnrollmentStatus = OptOut and whose KiwiSaver_OptOutDate is 57 days after the employee's start date.

Valid values when applicable: CRIT (ie did not meet the criteria to join KiwiSaver); ERIS (ie employer did not provide an investment statement for the employer chosen KiwiSaver scheme); EVNT (ie events outside of control meant the opt-out application was unable to be submitted within the 8 week time limit); INER (ie incorrectly enrolled under the age of 18); INFO (ie employer did not provide a KiwiSaver information pack within 7 days of starting employment); IRIS (ie IRD did not send an investment statement upon allocation to a default scheme); OTHR (ie other explanation).

KiwiSaver_LateOptOutReasonOtherExplanation Text

Not applicable for contractors.

Only needed for employees whose KiwiSaver_LateOptOutReason = OTHR.

KiwiSaver_SavingsSuspensionFromDate Date

Not applicable for contractors.

Only applicable for employees whose KiwiSaver_EnrollmentStatus = SavingsSuspension

KiwiSaver_SavingsSuspensionToDate Date

Not applicable for contractors.

Only applicable for employees whose KiwiSaver_EnrollmentStatus = SavingsSuspension

KiwiSaver_EnrollmentStatus Text

Value should be: Ineligible for contractors. If not provided, value will automatically be set where employment type is independent contractor.

Valid values for regular employees: SavingsSuspension; Enroll, Ineligible, OptIn, OptOut, Unenrolled

KiwiSaver_IneligibilityReason Text

Must be completed where KiwiSaver_EnrollmentStatus = Ineligible.

Value should be: Working as an independent contractor for contractors. If not provided, value will automatically be set where  employment type is independent contractor.

Valid values for regular employees: Not a citizen/permanent resident, Not normally living in New Zealand, Under 18 years of age

KiwiSaver_PreviouslyReported Text Valid values: True, False
Field Name Data Type Notes
TaxCodeDeclaration_IrdNumber Number Valid number containing no more than 9 numbers
TaxCodeDeclaration_TaxCode Text Valid Tax code - choose from the drop down
TaxCodeDeclaration_DateSigned Date  
TaxCodeDeclaration_EsctRate Number

Not applicable for contractors.

Value will be set to 0.00% where the KiwiSaver_EnrollmentStatus = Ineligible

Valid values for regular employees: 10.5, 17.5, 30, 33

TaxCodeDeclaration_SpecialTaxCode Text

Value should be: WT for contractors. 

Valid values for regular employees: M, ME, M SL, ME SL, S, SH, SB, S SL,SH SL, SB SL, ST, NSW, CAE, EDW, STC, ND

TaxCodeDeclaration_StudentLoanRate Number Not applicable for contractors, leave blank
TaxCodeDeclaration_SpecialTaxCodeRate Number Must be completed if 'TaxCodeDeclaration_SpecialTaxCode' contains a value
TaxCodeDeclaration_StudentLoanRateEndDate Date

Not applicable for contractors, leave blank

A date is only entered here if the employee is eligible for SDR

TaxCodeDeclaration_SpecialTaxCodeRateEndDate Date

A date is optional to provide for contractors 

TaxCodeDeclaration_RegisteredForGST Text

Value only needed if employment type is independent contractor

Valid values: True, False

 

Minimum Required Fields

To setup an employee to be processed in a pay run the following fields are required as a minimum:

  • FirstName
  • Surname
  • DateOfBirth
  • ResidentialStreetAddress
  • ResidentialSuburb
  • ResidentialState
  • ResidentialPostCode
  • PostalStreetAddress
  • PostalSuburb
  • PostalState
  • PostalPostCode
  • EmploymentType
  • StartDate
  • PaySchedule
  • PrimaryPayCategory
  • PrimaryLocation
  • PaySlipNotificationType
  • Rate
  • RateUnit
  • HoursPerWeek
  • BankAccount1_BSB
  • BankAccount1_AccountNumber
  • BankAccount1_AccountName
  • BankAccount1_AllocatedPercentage
  • TaxCodeDeclaration_IrdNumber
  • KiwiSaver_EnrollmentStatus
  • KiwiSaver_EmployeeContribution
  • KiwiSaver_EmployerContribution

Once an employee is set up in the system, import files may contain a smaller subset of fields but the following must always be included in order to be able to identify the employee to update:

EITHER:

  • IRD Number

OR:

  • First Name
  • Surname
  • Date of Birth

If you have any questions or feedback please let us know via support@nzpayroll.co.nz

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