If your business has not started planning for changes to payroll administration, now is the time to do so. This year has seen some critical tax and employment law changes take place.
Payday filing marks a notable change in the way businesses will report PAYE information to Inland Revenue. This edition contains all the detail you need to know including special rules for out-of-cycle and schedular payments, shadow payrolls and early adoption.
Recent employment law changes on the extension of paid parental leave.
Payday Filing in A Nutshell
From 1 April 2019 employers must:
- File employment information every payday instead of an Employer monthly schedule (IR348).
- Provide new and departing employees’ address information, as well as their date of birth – if they have provided it to you.
- File electronically (from payday compatible software or through myIR) if your annual PAYE/ESCT is $50,000 or more.
Note: The due date for payment remains the same at the 20th of the month (or 5th and 20th of the month for twice-monthly filers).
For employers, the most important change is that payday filing becomes compulsory from 01 April 2019. Although it’s voluntary until April 2019, it’s important that employers start thinking about how to integrate payday filing into their payroll processes before it becomes a requirement.
Ways to Payday File
Including your employment information (and correct a file) and employee details:
In myIR through the
Payroll returns account (instead of ir-File) by:
- file upload – payday filing compatible software is required, or
- onscreen data entry
You’ll need to let IRD know you’ve shifted to payday filing by opting in through your myIR account before you can see or use this account.
Directly from your payday filing compatible software
With this option you will be able to file directly to IRD from your software. A myIR account is a is a pre-requisite for this option as your myIR logon credentials are required to authorise any file submissions from your software.
Note: Paper filers can’t shift to payday filing before April 2019 unless they change to electronic filing.
You can opt in to either the file upload or onscreen options through your myIR account. Just go to ‘I want to’ in the ‘My business’ section of myIR. Alternatively, talk to your payroll or software provider about when they will be offering the functionality required to enable payday filing.
The above changes are all aimed at better integrating your tax obligations with your natural business processes.
If you want to shift to Payday Filing Now
You can shift to electronic payday filing now.
Review your payroll processes, plan and schedule when to shift.
- Ask your software provider when they’ll have payday filing compatible software.
- If you’re using myIR to file you’ll need to let us know you’re shifting to payday filing. You can do this in myIR.
Check out how payday filing works for: