Inland Revenue is expected to release a tender for a new software-as-a-service (SaaS)-based payroll system at the end of the month, ahead of the establishment of a new all-of-government payroll panel.
IRD will aims to replace its current on-premise solution with a software as a service system hosted on a public cloud service'
However it also ants to explore how much payroll activity could also be done for the department as a service.
The tax department requires that whatever system it selects will integrate with its recently implemented Oracle Cloud ERP solution, dubbed Ātea (space) in Te Reo.
The successful bidder's system will us the NZ all-of-government common process principles with minimum configuration and no customisation and be good to fully transition IRD from its current payroll by March 2022.
Meanwhile, an all of government payroll programme is also in the market identifying a range of payroll providers, services and implementers across government, and that appears to have confused some vendors.
IRD said it expected that the successful respondent to its tender would be one of the pre-qualified suppliers to the all-of-government payroll panel.
It later clarified that it intended to refer to the eventual establishment of a panel of payroll and related services providers.
"The AoG programme is currently developing its requirements and is expected to release its request for proposals (RFP) some time later than the Inland Revenue RFP," IRD said in answer to questions.
"We still expect that the successful respondent to this Inland Revenue RFP will apply to become a supplier to the all-of-government payroll panel, when that opportunity arises."
IRD's RFP is expected to be issued by 30 September with the deadline for proposals 11am, 2 November.
The contract is expected to be awarded in December or January after demonstrations and other activities with the anticipated contract start date of March 2021.
IRD's Ātea has become a template within government that the department is sharing with other agencies seeking to renew their enterprise applications in the cloud.
The department has already shifted the Productivity Commission, for whom it provides financial, HR and payroll services, into Ātea.
"We have received good early feedback from the commission on the cutover process and the toolset," it reported in its latest transformation update to government.