Since 1 April 2018, employers have been able to file payroll information every payday. Payday filing will be compulsory from 1 April 2019. Here’s what you need to know.
All employers will need to switch to payday filing by 1 April 2019.
If you’re a New Zealand employer paying more than $50,000 PAYE and Employer Superannuation Contribution Tax (ESCT) per year, you’ll need to file electronically through payroll software or myIR from 1 April 2019.
If your total PAYE/ESCT is less than $50,000 for the previous year ended 31 March 2018 you can either:
Currently, employers file employee earnings and PAYE information with Inland Revenue every month, regardless of how frequently they pay their employees. Under payday filing, this information will be reported to Inland Revenue every time your employees are paid.
Instead of submitting an employer monthly schedule, you’ll need to submit an employment information schedule after every payday.
Collecting payroll information more regularly will help Inland Revenue offer increased certainty about employees’ tax obligations and entitlements.
Payday filing (external link) — Inland Revenue
There are three ways you can file online:
You may find payday filing easier if you use payroll software, because this allows your payroll information - including salary, wages, PAYE and other deductions - to be automatically sent to Inland Revenue at the same time as you pay your employees, which could save you time.
If you submit employment information directly from your payroll software, you’ll still need to submit an employer deductions form (IR345) and arrange payment. The due dates for paying and submitting the IR345 stay the same.
PAYE filing is changing [PDF,93KB] (external link) — Inland Revenue
Payday filing for employers (external link) — Inland Revenue
Payday filing update (external link) — Inland Revenue
If you already use payroll software, ask your provider how they can support payday filing. Ask if you can file from your software or file upload in myIR. Your software needs to be compatible with payday filing by 1 April 2019. Chat with your provider about the changes and see how they’re planning to be ready.
You’ll have two working days after your payday to file the returns (or ten working days if you’re filing on paper). Payment due dates for PAYE and other deductions won’t change.
Register for myIR (external link) — Inland Revenue
If you file direct from payroll software, you don’t need to contact IR to start payday filing – just make your first submission and you’ll have begun payday filing.
For either of the options using myIR, you should call Inland Revenue on 0800 377 772. They'll register you and work through the process with you.