Payday filing - What are the changes?
Image from Xero
What is Payday filing?
Payday filing is a new method for reporting employment information, where you will file your employment information each payday instead of filing an Employer monthly schedule (IR348) every month. Payday filing is compulsory from 1 April 2019.
Why Payday filing?
As Inland Revenue will receive tax information more regularly, IRD staff will have the ability to provide employees with timely access to the information they require, such as Working for Families Tax Credits, student loan repayments and KiwiSaver contributions.
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
File electronically, if annual PAYE/ESCT is $50,000 or more - within two working days of paying your staff (from payday compatible software or through myIR)
If you pay less than $50,000 in PAYE & ECST you can submit online (within two working days) or on paper (within 10 working days).
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).
Payroll Software supporting Payday filing
Payroll software providers have been working closely with IRD and will be Payday filing ready by 1 April 2019. Many businesses are already using payday filing compatible payroll software, which allows information to be automatically sent to Inland Revenue or uploaded to myIR, following each payrun.
A few payroll software examples:
Xero Payroll - not yet integrated but will be ready from 18th March 2019 to connect to your myIR. Payday filing in Xero Payroll will just be a couple of clicks from within your pay-run. You will not need to log in to myIR to file every time.
ACE Payroll - is already integrated enabling ACE payroll users to payday file, however, you need to run a software upgrade first. To payday file you need to download the files from within the payroll system and then log into myIR to upload them.
FlexiTime - is already fully integrated. Payday filing is automatic, once you finalise a pay-run it automatically files it with IRD.
We recommend, you get all set-up and ready for Payday filing before you are required to payday file. For more information about payday filing visit IRD, alternatively, don’t hesitate to get in contact with us at firstname.lastname@example.org or 03 577 7128, we are more than happy to help.