Payroll record keeping
Payroll record keeping falls into two categories:
- Records an employer must keep to meet various legislative requirements for retention of payroll records
- Records that schools must keep to support annual financial statements.
The school's board of trustees, as the employer, is responsible for ensuring that records are kept. While payroll records and reports are available in the Novopay system, these do not meet legislative requirements, and a record-keeping system within the school is required.
Payroll records consist of both the inputs into and the outputs from each pay cycle. These are described below.
These pages should be read in conjunction with the Financial Information for Schools Handbook (Ministry of Education website).
Records of payroll inputs
Payroll inputs are the instructions that are entered into Novopay each pay period, including leave, time sheets, salary and allowance changes, employee details changes, new appointments and terminations, etc.
Records of these payroll inputs consist of:
- copies of all forms sent to the Novopay Service Centre
- copies of bulk upload spreadsheets used to enter data
- copies of email correspondence to/from the Novopay Service Centre.
These records form part of the wage and time records that must be kept for a minimum of six years.
See Legal requirements for payroll records.
Records of payroll outputs
Payroll outputs are the reports that are generated during each pay cycle. These reports are used to monitor activities during the pay cycle to ensure that the pay is correct.
It is recommended that you keep the reports for each pay cycle until at least after the annual financial audit is completed. After this, seek guidance from your auditor regarding their disposal. See Audit requirements for payroll records.
The school must have a system for ensuring that the information held about its employees meets the required standard. For guidance, see Employment records (NZSTA website).
Ministry of Education website:
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