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
If supported by your software provider, you can file directly to Inland Revenue without having to upload any files through myIR. This means you’ll:
- 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.
Your software will need to support the new employment information and employment details file, along with some KiwiSaver files. Check with your software provider if it can. When you’ve completed and submitted these files they’ll transfer from your software directly to Inland Revenue.
You’ll need to use your myIR account user ID and password to authorise these submissions from your software. This is a one-off process to establish a link between your software and Inland Revenue.
- File upload to myIR
If supported by your software provider, you can upload files in myIR in the Payroll returns account. This account will only appear once you’ve opted into payday filing.
You can send your information through File return or File transfer link. From here, the process is similar to ir-File.
- 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.
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:
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.