LCA Payroll Project
The LCA have a Human Resources programme (called LCA HRS) which has been processing LCA payroll for the majority of the congregations, districts and LCA Churchwide Office since 2015. The LCNZ have not been part of this system.
Background
The LCA implemented a national HR system in 2015 using the Preceda platform. After several changes of ownership Preceda was purchased by Dayforce. Dayforce announced that Preceda would be scheduled for closure by placing it in sunset conditions (no further upgrades and minimal changes except where legally required if the client was working to move to the replacement Dayforce) in February 2026.
The LCNZ have implemented their own system for congregations using the NZ provider Thankyou Payroll. There are some issues with this system, which have resulted in some non payment of entitlements. It would be desirable if these were permanently solved to ensure the true entitlements were paid on time and in full.
The LCA have been investigating a replacement system for the last 12 months. Debbie Venz has been attending project briefings as part of the District Administrator team who have been kept up to date on the processes until the end of 2024. As part of that process we agreed that the LCNZ would be onboarded separately. This would allow for a widespread consultation in New Zealand, the Australian congregations to be onboarded direct from Preceda and a well-informed decision to be made in New Zealand with a 1 January 2026 onboarding if this was agreed as an appropriate solution.
The project involved identifying potential providers (more than 10), assessing those providers against an agreed list of requirements, coming to a short list (3), and then determining a preferred provider.
Current situation
The project was formally reviewed, discussed at the LCA with their Finance Audit and Risk Committee and the General Church Board. The General Church Board signed off on the project with the preferred provider approved on Friday 21 February. Since then, the project team have been working with the provider in order to sign the contract off so they can move to implementation, installation and business as usual and then closing off the Preceda HR system.
The contract covers the following processes:
- Implementation of NZ Pastor salary or church worker award payments
- Online onboarding*
- Timesheet completion online by employee*
- Timesheet approval by approving manager *
- Standard payroll payments (e.g. pastors paid standard payroll amounts), not requiring intervention/approval
- Processing of payroll
- Payment of payroll (NZD)
- Payment to NZ IRD (PAYG and KiwiSaver)
- Payment to NZ and Australia superannuation*
(NZ and LCA contributions) - Regular reporting – general and specific*
- Online leave applications and approvals*
- Leave records*
- Help desk for employer and employee*
- Mobile app*
*These items are in addition to or an improvement on what is currently available with Thank You Payroll who provide payroll services in the LCNZ.
Conversation
LCNZ were advised on Thursday 27 February that this contract, which is for implementation by both Australia and New Zealand HR and payroll process was to be signed on 28 February.
If LCNZ were unable to complete in this time frame the alternative would be a different contract with significant additional costs. This was contrary to the processes agreed with the LCA project team. This did not allow any consultation with those in New Zealand affected (Congregations, Pastors, staff) on the changes and how that might affect them, particularly at timing of processing (monthly v fortnightly), access requirements for approvals (pastors, staff and congregation leaders) and cash flow basis (how to process in NZD and through NZ banking system. LCNZ were relying on the extended period to do this which is not available under the contract proposal.
The benefits in LCNZ as a result of the proposal
- Saving as LCNZ financial administrator no longer needing to process and review payrolls
- Timesheets no longer need to be transmitted by email to finance administrator
- Timesheets no longer need to be entered by finance administrator from approved time sheets prepared by staff
- Queries directed to LCA HRS for research and answers
- Direct approvals by managers
- Reports able to be downloaded by approving managers
- Annual Pastor salary schedule changes input at LCA HRS level
- onboarding costs per pastor or staff
- offboarding/termination costs per pastor or staff.
- Automation on transfer of pastors and staff between LCANZ entities.
- Automation around issuing of NZ email accounts and provision of LAMP2 data requirements
- Guaranteed payment on pay day of LCNZ portion of LCA Super amounts (employer and employee) without LCA intervention
- Guaranteed payment on pay day of LCA portion of LCA Super amounts (employer) without LCA intervention
- Leave reports available online – pastors leave is held in various formats in congregation records.
The impacts to NZ payroll processing
- LCA HRS run the process
- Paid from NZ bank account (no change)
- Direct debits required (no change)
- Direct NZ help desk available
The outcome
The LCNZ Council of Synod agreed to accept the proposal despite the misgivings of the lack of time, consultation, indications of service levels and final costings. Thew LCA were advised late on 28 February of this decision after CoS had a briefing and meeting by email.
LCA have now signed the agreement with the successful provider – Employment Hero.
Implementation plan
The plan is for implementation to take place for transfer from current payroll (TYP) in October 2025. There will be three payroll tests (parallel runs) to ensure the change is calculating pay in the same way (with better outcomes). The specifics will be determined with the LCA implementation team. Currently this is being gathered and will be shared once the information, including the impact for LCNZ pastors, staff and congregations and the LCNZ.
The CoS agreed the following next stages:
- Prepare a paper (this enews article) advising LCNZ congregations of this action including
- Why this was undertaken without consultation
- Why the rush
- Implementation plan (high level)
- Impact for them (high level)
- Potential timing
- Prepare for a Treasurers presentation (April)
- Prepare for a Synod presentation (June)
- Prepare a session at CWC for instruction and other implementation (September)
- Review costings and apply for a Gateway Gift minor grant if required in the 2025 year.
If you have any queries about how this may affect you, your congregation, staff then please contact a member of Council of Synod or attend one of the briefings 2 – 4 as above.
Council of Synod
March 2025
