The time for New Zealand employers to get ready for the shift to payday filing is now, says Inland Revenue. From April 1 2019 all employers will have to file their employment information every payday.
Inland Revenue customer segment lead Richard Owen says the easiest way to comply is through payroll software.
“The first step is for all employers to start asking their software providers when they expect to be ready so planning can begin. This is the sort of task where it pays to be ready early rather than scrambling at the last minute.
“Inland Revenue’s systems for receiving payday information are up and running, so companies who want to can start filing straight away. If they’re using software they need to make sure it’s compatible first.”
More than 400 employers are already payday filing but there are many thousands more that will need to join them before April 1.
Payday filing will replace the employer monthly schedule (EMS), which currently needs to be filed either in my-IR or through the post.
Those with compatible software will be able to securely submit their information directly to Inland Revenue instead of having to do a separate file upload in myIR.
Employers who deduct $50,000 or less in PAYE and Employer Superannuation Contribution Tax (ESCT) will be able to file on paper, though only from April 2019. All other employers will need to file electronically.
Owen says payday filing will have a transformative effect both on businesses and their staff.
“Businesses will be able to integrate their tax obligations into their regular payroll cycles, while the more timely information will allow Inland Revenue to provide certainty around an employee’s social entitlements such as Working for Families Tax Credits.”
Find out more at www.ird.govt.nz/payday.
Note: NZBusiness has a special report on Payday Filing in it’s October 2018 issue.