Hundreds of Kiwi business owners are enjoying the benefits of payday filing – are you?
If not, you’ll need to be by 1 April when payday filing becomes compulsory. Now’s the time to work out how you’re going to integrate it into your payroll processes and save time on your tax obligations.
Here’s what payday filing means to you
- File employment information every payday instead of an Employer monthly schedule (IR348). This needs to be done within 2 working days of each payday (if filing electronically) and within 10 working days when filing on paper
- You no longer need to file
a IR345Employer deductions form.
- You’ll need to provide new and departing employees’ address information, contact details, start date as well as their date of birth.
- File electronically (from payday compatible software or through myIR) if your annual PAYE/ESCT is $50,000 or more (this was previously $100,000)
Remember, the due date for payment is still the 20th of the month (or 5th and 20th of the month for twice-monthly filers).
How do I payday file?
You will automatically be registered for payday filing from 1 April 2019.
On 28 February, a new Payroll returns tax account will be available in the My Business Section in myIR for you to start payday filing but this is not mandatory until 1 April 2019.
There are three ways to file electronically – direct from payroll software, file upload or onscreen via the My Business Section in myIR.
You do not need to file a return if it is nil.
How do I shift over to payday filing
- Review your payroll processes and plan and schedule when to shift.
- Ask your software provider when they’ll have payday filing compatible software (Xero, MYOB
and Ipayrollalready do).
- If you’re using myIR to file, let the IRD know you’re switching to payday filing in myIR.
Call us today on (03) 374 9393 and find out how we can help by looking after all your payroll requirements.