Payday Filing is on its way!
There is news for all employers. The government has changed the rules for payroll filing. It still has five months to be implemented completely but we are here to get you ready for it so that when the curveball comes, you can hit it out of the park each time!
What is payday filing?
“Out with the old, in with the new!”
Payday filing is an online filing option to send payroll information to IRD.
From 1 April 2019 onwards, all employers must file employment information every pay run instead of an Employer monthly schedule (IR348). This means that each time you pay your employees, you need to file PAYE information.
You must provide new and departing employees’ address information, and their date of birth if they have provided it to you. These details need to be filed on or before any new employees’ first payday. They don’t require these details for existing employees. You should let your employee know that this information will now be provided to IRD.
Note that the due date for payment stays the same at the 20th of the month (or 5th and 20th of the month for twice-monthly filers).
Why is payday filing coming?
Payday filing endeavours to minimise the number of steps and potential errors associated with processing and filing the payroll information.
The aim is to add IRD’s information requirements into payroll processes, rather than being a separate step. This minimizes the number of steps and reduces the chances of errors and resulting penalties.
Does it apply to everyone?
Yes! If you have employed people, payday filing applies to you. If you make PAYE/ESCT deductions of more than $50,000 a year, you must file online after each pay. You have the option to file manually using myIR file by completing the on-screen form.
Ways to payday file:
Including your employment information (and correct a file) and employee details:
- In myIR through the Payroll returns account (instead of ir-File) by:
file upload – payday filing compatible software is required, or
onscreen data entry.
You’ll need to let IRD know you’ve shifted to payday filing by opting in through your myIR account before you can see or use this account.
- Directly from your payday filing compatible software:
With this option you will be able to file directly to IRD from your software.
A myIR account is a is a pre-requisite for this option as your myIR logon credentials are required to authorise any files being submitted from your software.
Employers must file electronically (from payday compatible software or through myIR) if your annual PAYE/ESCT is $50,000 or more.
Note that paper filers can’t shift to payday filing before April 2019 until they change to electronic filing.
IRD has provided links to help make the transition easier which are given here: