Tips for Tackling Your Payday Filing Obligations
With the upcoming changes to IRD payday filing almost here, business consultant Janina Kay shares her tips on why moving to online software is a good choice for businesses. The looming introduction of payday filing on 1 April will be immensely painful for a large number of small businesses, particularly if they are still doing […]
With the upcoming changes to IRD payday filing almost here, business consultant Janina Kay shares her tips on why moving to online software is a good choice for businesses.
The looming introduction of payday filing on 1 April will be immensely painful for a large number of small businesses, particularly if they are still doing manual payroll. The increased reporting requirements will add significant time and cost to what is already an agonising task for many business owners.
Moving to an online payroll provider is the first step to ease the pain, but businesses would be best served to choose a payroll provider who is accredited as an IRD intermediary as they will take care of meeting the payday filing requirements in the easiest possible way.
Where businesses previously filed their Employer Monthly Schedule (IR348) every month, from 1 April 2019 they will be required to send an Employment Information Schedule to Inland Revenue after each payday. This includes information about employer superannuation contribution tax (ESCT) for each employee, pay period start and end dates, pay cycle and payday date, as well as information about new and departing employees.
The overhaul of IRD’s technology platform has been designed to ensure IRD receives more timely and accurate information; reducing the likelihood of any tax errors and ensuring employees are paid the correct salary and entitlements.
For employers who conduct pay runs every week, this additional reporting obligation may sound quite onerous, but it doesn’t have to give you a headache.
Moving to an online payroll provider who is also an IRD intermediary takes away the pain and helps to smooth out cashflow. As well as preparing the pay run and paying your employees, they also calculate entitlements, update leave balances, submit payslips, and do all the IRD filing on your behalf. It couldn’t be simpler!
When selecting a payroll provider for my clients, I work to match my client with the best payroll solution to meet their needs and budget. Some clients have straightforward pay runs, paying their employees the same amount every payday. Others have employees with variable salaries or use timesheets.
I look for a payroll solution that is easy to set up, easy to use and offers immediate help desk support — should it be required. You absolutely need someone at the other end of the phone to help you resolve issues when you have peoples’ salaries at stake.
I was first introduced to Thankyou Payroll by a client that needed me to provide business analyst advice. I took a look at the software and fell in love. Not only was it easy to use and more cost effective than most of the competitor products, the philosophy behind Thankyou Payroll was beautifully aligned with my client. Both are social enterprises, established to ensure profits are channeled back into the community.
I have now moved a number of my clients across to Thankyou Payroll and each time the set up has been quick and pain free. Their payrolls are running smoothly and efficiently and these businesses are already meeting all of their IRD reporting obligations. Should my clients have any questions, I know the Thankyou Payroll help desk team is always available to help them.
Thankyou Payroll is now my preferred online payroll provider. I know that by using Thankyou Payroll my clients are benefitting from their expertise, and grass roots community groups are receiving micro-grants; enabling them to really make a difference in peoples’ lives.
Janina Kay is a business consultant offering payroll, bookkeeping, business analyst and other consulting services. Janina established Diverse Solutions in 2004 to provide payroll and bookkeeping support to small and medium sized businesses, allowing business owners to get back to their main passion, running their business. She has a team of three and they work remotely for clients across New Zealand.
Thankyou Payroll is a social enterprise that offers online payroll software and services to manage all the complexities of payroll, leave entitlements and taxes. It keeps businesses compliant with Inland Revenue, and have a unique business model that makes payroll services accessible for everyone.
Thankyou Payroll puts purpose and profit side by side. It provides free payroll intermediary services to small businesses and charities all over New Zealand, and gives to Thankyou Charitable Trust who distributes grants to underserved postcodes in New Zealand.
Thankyou Payroll is carbon-neutral certified and takes sustainability seriously, threading it throughout its business activities. There are offices based in Wellington and Dunedin, full of passionate people who share its kaupapa. Being a client means contributing to something bigger than just payroll.