We’re talking about the move being made that requires all businesses to get their payday paperwork to IRD each and every payday.
That means no more submitting the paperwork monthly. You must submit PAYE details at the same time as you pay your staff, whether they are paid weekly, fortnightly or monthly.
By April Fool’s Day – April 1, 2019 – it will be compulsory for all businesses to meet this requirement for their PAYE employees.
Some businesses will already be doing this, so they can put their feet up and chillout.
The new system doesn’t need to be an admin nightmare for businesses, especially when there are smart tools around to take care of the payday paperwork.
At BUSINESS buddy we like because they take the hassle out of managing payroll for many of our clients.
What SmartPayroll says about payday filing
Payday filing gives Inland Revenue information on the day the payments are made, ensuring their systems are as up-to-date as possible.
Payday filing requires the employer to complete an online form, which provides Inland Revenue with the following information:
· The pay details of your employees and pay cycle
· Information on new and departing employees; start/end date, contact details and date of birth – this should be filed before the employees’ first payday.
Employers can correct employment information online, rather than completing an employer monthly schedule amendment form (IR344).
Inland Revenue still won’t be able to accept negative adjustments.
To make entering the correct information easier for employers when new employees are hired, paper IR330 and KiwiSaver deduction forms for new employees will also be accessible online.
Depending on your annual PAYE and ESCT deductions amount, employers will either need to file electronically or by paper. If you choose to opt in prior to 1 April 2019, you will need to file electronically.
File electronically if these deductions are $50,000 or more. This will need to be filed within two working days after the employees’ payday.
*Anyone who files their PAYE as an IR56 taxpayer will have 10 working days after payday to file the required information.
Phew – thank goodness the SmartPayroll angels are taking care of this admin.
If you already use SmartPayroll, you may not notice much difference and if you use any other payroll software, you need to ensure it is updated.
Inland Revenue has who file their information late, or manually.
If you have any concerns, contact your payroll software company and check they’re taking the correct steps towards being compliant by 1 April 2019.
And, the good news
It’s only the paperwork that changes – not the .
These dates stay the same – either once or twice a month depending on whether your business is withholding less or greater than $500,000 per year.
Employers may choose to make payments on a more frequent basis, but this remains optional.
If you are uncertain about preparing for this change contact BUSINESS buddy now and we’ll give you a hand.
Phone 0800 283 399 or .