- January 31, 2019
- Posted by: Angela
- Category: PAYE
The way employers report payroll information to Inland Revenue (IRD) is changing. From 1 April 2018, IRD introduced a new electronic reporting system, providing employers the option of filing payroll information every payday. From 1 April 2019, the new system will be compulsory for most employers, so it is imperative business owners get to grips with the new rules to avoid the risk of non-compliance.
Under the new payday filing system, the information must be reported every time employees are paid, which will be complex for businesses with a combination of employees paid weekly, fortnightly and monthly.
From 1 April 2019, the new system will be mandatory for any NZ employer who withholds more than $50,000 of PAYE and Employer Superannuation Contributionn Tax (ESCT, e.g. Kiwisaver) per year. Paper filing will remain available for smaller entities who do not exceed this threshold, although they may also opt in.
The details submitted to IRD will remain substantially the same, with additional information required in respect of ESCT payments, the pay cycle frequency, pay period start and end dates, and the payday date. There will also be amendments to the way information is collected for new employees, allowing electronic onboarding for new starters…….
For more information on Payday filing changes please go to our Latest News page (Issue 4: Nov 2018 – Dec 2019) or contact us.