What is payday filing?
Currently, employers file their employees’ earnings and PAYE information to Inland Revenue once a month, regardless of how frequently they pay their employees. Under the new Payday Filing (rules which are compulsory and coming into effect from 1 April 2019) this information will need to be reported to Inland Revenue every time employees are paid. The due date for the payment remains the same at the 20th of the month (or 5th and 20th of the month for twice-monthly filers).
What does it mean for employers?
Employers will need to:
- File employment information to Inland Revenue within two working days of paying staff
- Provide new and departing employees’ address and contact details, and their date of birth (if they have supplied you with the information)
- If your annual PAYE and ESCT deductions are $50,000 or more, you will need to file your returns online
How do I file the Payday Returns?
- Directly from your payroll system
- no longer have to file upload in myIR
- be able to set up your employees with the right information from the start
- make adjustments and be able to amend information you’ve already filed.
- File upload to myIR
- Onscreen myIR (for smaller pay runs)
If you have smaller pay runs, you can use the Inland Revenue’s onscreen data entry method in myIR in the Payroll returns account. Onscreen filing is similar to the current process for filing your Employer monthly schedule (IR348).
Payday filing will actually be come simpler if you use Xero Payroll. Currently you have to still manually file your PAYE returns with Inland Revenue. However from 1 April 2019 you will be able to file the returns directly through Xero. Xero will contact you directly once the Payday filing is available.If you use Xero Payroll, they are currently offering a free 45 minute webinar which will explain how Payday Reporting works within Xero Payroll. https://www.xero.com/nz/training/small-business/setting-up/getting-ready-for-payday-filing-in-xero/
If your accounting system is MYOB Payroll, please follow the below link as to what you need to do to get ready for Payday Filing:https://www.myob.com/nz/support/payday-paye
As SmartPayroll already handles the filing of your monthly returns to Inland Revenue, you do not need to do anything differently. Lastly, if you require any assistance, or have any questions about Payday Reporting, please contact our office and we can provide you with some further information.
Best Start tax credit, 03 July 2018
The Best Start tax credit (BSTC) is a new component of Working for Families Tax Credits (WIFTC). It is a payment to help families with the costs in a child’s first three years. It is available for all qualifying families with children due or born on or after 1 July 2018.
The BSTC replaces the Parental Tax Credit (PTC). If a child is born before 1 July 2018 but had an expected due date after this, a person qualifies for BSTC. However, if a person also qualifies for PTC, they need to choose which payment is best for their family — they cannot receive both.
A person cannot get BSTC and paid parental leave (PPL) for the same child, at the same time. The BSTC will start once the PPL has finished.
Paid parental leave is extending from 18 weeks to 22 weeks from 1 July 2018 for babies born or expected to be born on or after 1 July 2018. This also means the number of keeping-in-touch hours has increased from 40 hours to 52 hours, Keeping-in-touch hours allow an employee who is on parental leave to stay connected with their employer and perform work from time to time, such as attending a team day.
A person can also get BSTC while they receive any of the following for children in their care:
• Orphan’s Benefit
• Unsupported Child’s Benefit, or
• Foster care allowance.
The amount of BSTC is up to $60 a week ($3,120 a year) per child for babies born on or after 1 July 2018. All eligible families will receive this payment until the child turns one, regardless of their household income. Households whose income is less than $79,000 will continue to receive $60 per week until the child turns three. Those earning above $79,000 may continue to receive payments at a reduced amount. The upper threshold is $93,858 (for one child) when payments stop.
More information is available at the Inland Revenue website: www.ird.govt.nz.
We have until August to get our overseas accounts in to line
Important Tax Changes
IRD Online Services Outage
- On Saturday 12 August 2017 services will be unavailable from 1.00pm and the estimated time for the services to be back up is Saturday 12 August at midnight.
- On Saturday 19 August 2017 services will be unavailable from 1.00pm and the estimated time for the services to be back up is Saturday 19 August at midnight.
Inland Revenue lifting the veil
Do you have a student loan?
- how long it will take to get loan-free
- how extra repayments can get you loan-free faster, and
- if you’re an overseas-based borrower – how to save on interest. Click here