The Ministry of Education is going to market for a new payroll system as the clock ticks for it to move to more compliant software.
A tender released today comes as the Department of Internal Affairs is poised to create an all of government panel of payroll systems providers. DIA was expected to release its tender for that panel sometime later than the ministry's.
"We have incorporated the draft AOG payroll requirements into our functional requirements where possible and identified these," the ministry's tender said.
"We expect that the successful respondent to this request for proposals will apply to become a supplier to the all of government payroll panel when that opportunity arises."
The ministry said it would be appreciated if respondents could provide details of the fit of their solution to those AOG requirements.
The timing for this project is largely being driven by the fact that support for the ministry's current product, PS Enterprise or PSe, potentially ceases in April 2022.
The ministry also plans to align with the current Holidays Act payroll system remediation project underway, which is due for completion mid/late 2021 to provide a "seamless HR/Payroll solution for the ministry and our people".
The remediation project is a result of the discovery of serious errors in the calculation of holiday pay across both public and private organisations in New Zealand in 2016.
However, it is clear the ministry is also looking for a step-change in the way it can better service its payroll team and its 4200 employees.
"The current system has a heavy reliance on manual processes with limited options to automate, provide self-service options or remote access," the tender said.
PSe was originally developed by Peterborough Software, which was then acquired by Northgate Arinso, now NGA Human Resources.
In early 2017 NGA Human Resources announced it had sold its A/NZ business to Ascender HCM.
Australia-based Ascender has acquired several payroll and HR companies in recent years, including PeopleStreme in 2018, Workcloud in 2017 and Talent2's systems in 2015.
Talent2 was the provider for the education payroll project Novopay which turned into one of New Zealand's largest IT project failures.
The ministry said the new system would pay 4200 staff working out of 35 locations.