What is payday filing?
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:
- file online, or
- by paper returns (but only from April 2019).
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.
There are three ways you can file online:
- direct from your payroll software
- by file upload in myIR, and
- on-screen in myIR.
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.
Below is a useful IRD link that you can go to obtain all the information you need relating to Payday filing:
If you need any assistance with Payday Filing, or if you require any further information on the same, please contact April Jenkin on 09 407 7117, extension 227, or email on firstname.lastname@example.org