Paydays fall on Christmas day and New Year Day

Question

Just refreshing my brain as I am self-doubting myself

my payroll ends on a Tuesday night for Payment on a Wednesday

With Christmas day and New Year's Day falling on a Wednesday

I know the banks will still process the payments but before 7-day banking came along we had to pay payroll the day before a public holiday. I can't find anywhere that this RULE still applies so I am assuming it is no longer a rule since 7-day banking came along, and I can just set the payrolls to pay out on the set days (both Wednesdays ) ?

jenniek · Answer

Hi @Leanne27

We are processing all our payruns to be paid on the Tuesday before - to save any issues with the banks possibly not processing on Xmas day - and to ensure employees have access to their money before the public holiday. This is something that should be in your employment contract.

Bullswool · Answer

Hi, we encountered this issue in 2023.

I loaded pays on Monday (Christmas Day, 25 Dec), and bank transfer to employees Tuesdays (Boxing Day, 26 Dec). I still entered my usual week ending date of Friday 22 Dec, and made the payment date Friday 22 Dec, and paid staff early that week on Friday 22 Dec (rather than Boxing Day Tuesday). Everything worked fine with those dates.

The same scenario occurred for us the year before, in 2022. I processed exactly the same as above.

I'm not based in NZ, but do banks transfer 7 days per week, even weekends and public holiday? Thats cool.

In AU, we pay it safe and process on regular working days (maybe because we are using AU bank to pay NZ staff...).

Regard the "rule":

www.employment.govt.nz/pay-and-hours/pay-and-wages/pay-periods-and-paydays

In some situations, payday might move to a different day. For example:

* payday is usually the 15th of the month, but this month the 15th is a Sunday
* payday falls on a public holiday.

If employees are going to be paid on a different day to usual, the employer should tell them when they will be paid:

* when the employee first starts work — for example, by including a process for what happens when payday moves in the employment agreement, or
* at the time, if the change to payday was unexpected.

Princess_R · Answer

Hi @Leanne27,

You can still process payroll as normal regardless of the date, as long as the hours and leave are properly adjusted. The 7-day banking rule is likely a rule implemented by your own bank and is not related to the payroll process at MYOB. I suggest you contact your local bank to address this and ask for their advice on the best way around the policy should it still be in effect.

Cheers,

Princess