Bank batch files are one of the ways you can pay your employees with PayHero. Learn more about bank files below, or for more information on the options available, see our article: How do I pay my employees?
Enabling Payment with Bank Batch Files
Under Manage > Settings > Payroll Settings in PayHero, ensure you've ticked the Bank Batch File option.
The Include Tax in Payments option is enabled by default in PayHero, and allows you to pay the IRD each payday (i.e. simultaneously with your employees), for hassle-free processing. It means your pay and tax obligations are taken care of on payday, and you don't need to think about it later in the month. If you'd rather handle payments to IRD manually, ensure this setting is deselected.
After processing a pay run, PayHero automatically generates a bank file containing all the payment transaction information for paying your employees and the IRD. These files contain employees’ direct credit information and should be uploaded to your (i.e. the employer’s) online banking to complete payment.
When you click Send Pay, PayHero will generate a file compatible with your online banking. The format is based on the bank account number entered in Manage > Settings > Payroll Settings, provided you bank with one of the supported banks.
These files are populated with the details from the pay. The bank Particulars, Code, and Reference for each employee will be based on the pay date and your company name.
You can also download bank files from Payroll > Sent. Select the pay or pays you want to download, open the options menu from the right, and click Download Bank Batch File. Each pay will generate a separate file.
The files will save to your browser's default location for downloads. The file name will be in the format of 'BankBatch_Pay_YYYYMMDD'.
By default, PayHero includes tax payments to the IRD in your pay cycle's bank batch files, so that all relevant tax is paid to the IRD at the same time as paying your employees.
If you would rather manually make your payments to the IRD by the 20th, this setting will need to be turned off via the Payroll Settings page. Untick the 'Include Tax in Bank Batch' checkbox to disable per-pay tax payments.
Each month, you can then head to Tax > Unpaid. Select the Tax Month you wish to pay, open the options menu from the right, and click Download Bank Batch.
A file will automatically download, containing the payment information required for that tax period - KiwiSaver Employee and Employer contributions, Student Loan, PAYE, Child Support etc. You can then upload that to your online banking, the same as the payroll file.
Remember to select Mark as Paid from the options menu once you've processed a tax payment.
Please note, each bank may refer to Bank Batch Files under a different name. The relevant links to bank websites and their file import process can be found below.
PayHero's Bank Batch Files can be generated for the following banks:
- ANZ - If you're using regular online banking rather than ANZ Direct, you will be restricted in how many payments you can include in the batch, and may not be able to include tax payments. Learn more here: Uploading a Payment File in ANZ Internet Banking.
- BNZ - Payroll and Direct Credit Payments
- Kiwibank - Bulk Payments
- National Australia Bank
- National Bank of New Zealand
- The Co-operative Bank
- Trust Bank
- Westland Bank
- Westpac - Business Online User Guide Page 18