State Payroll Blunder


Recent media articles have raised the possibility that workers in private businesses may have been short-changed. 

Finance Minister Bill English signalled that the problems go back to the Holidays Act in 2004 and "there may be a widespread issue in the public sector as well as the private sector".

We would like to reassure our customers that FlexiTime is completely compliant with the Holidays Act.

The problem with payroll at MBIE relates to the application of average or ordinary pay rates.  FlexiTime calculates both of these rates and makes them available for selection when an employee takes leave.

Additionally, many payroll software packages are unable to do an accurate calculation of Average Daily Pay where the Relevant Daily Pay cannot be determined because the employee works different hours.

Because FlexiTime has powerful time-sheet functionality built in, our calculation of Average Daily Pay knows how many days have been worked in each pay. FlexiTime uses the days worked and the gross earnings in the last 12 months to calculate Average Daily Pay.

Even if time-sheets are not used FlexiTime provides the option for days worked to be entered at each pay. This is then used to calculate the Average Daily Pay. Please see our support article Average Daily Pay Rate for more information.

We are also actively canvassing for simplification of the Holidays Act. You may be interested to read the numerous blogs we have written on this topic at FlexiTime Blog.

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