Last month’s article about payday filing generated a lot of questions and feedback. We’ve worked with Inland Revenue to bring you some answers.
When: Since 1 April 2018, employers have been able to file payroll information every payday. From 1 April 2019, employers will be required to file payroll information every payday.
What: If you’re a New Zealand employer paying more than $50,000 PAYE and Employer Superannuation Contribution Tax (ESCT) per year, you’ll have 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:
Payday filing (external link) — Inland Revenue
PAYE filing is changing [PDF,93KB] (external link) — Inland Revenue
What if some of my employees are paid monthly, and others fortnightly?
You’ll have to file employment information for all employees within two working days of paying them. So, if you pay some employees monthly and others fortnightly, you’ll need to file within two working days of the fortnightly payday and within two working days of the monthly payday.
PAYE payment dates and methods of payment remain the same. This means you’ll need to continue filing an IR345 (employer deductions form) and sending through payment to Inland Revenue once a month.
It’s important that you still only send payment to Inland Revenue once a month. This will ensure the payment goes to the right place, and isn’t offset against something else.
What forms are changing?
The new online forms will be slightly different, because Inland Revenue will need some extra information from you, eg new employees’ contact details and date of birth.
At the moment, employers file two forms with Inland Revenue:
Under payday filing, the IR348 will be replaced with a new employment information schedule, which you’ll need to fill out each payday. You’ll also need to provide employee details, which will capture information about new and departing employees.
If you use payroll software, talk to your provider about how they can help.
What is the time limit for payday filing?
If you’re filing electronically, you need to file within two working days of paying your employee.
If your annual PAYE/ESCT is less than $50,000 and you’re filing on paper, you’ll have ten working days to file.
Regional holidays are considered working days, so you’ll need to count them when working out when to file payroll information.
The days between – and including – 25 December and 15 January aren’t considered working days, so all payday filing for that period will be due by 17 January.
Isn’t this creating more work for employers?
Not necessarily – if you’re using software, payday filing can become part of your payroll process, rather than an extra step.
It means that Inland Revenue will receive more timely and accurate information, which will then be used to give your employees more certainty about their tax obligations and entitlements.
Do I have to call to opt-in to payday filing?
No you don’t. If you want to start payday filing, you can opt in through your myIR account. You can do this under ‘I want to’ in the ‘My business’ section of myIR. If you file directly from your software, you don’t need to opt in, just send in your first employment information schedule and you’re all set.
Once you've opted in, the ‘Payroll returns’ account will appear under your accounts and you can start payday filing at the beginning of the next month.