From the 1st April 2019 payday filing will become mandatory.
The IRD have sent out an interesting newsletter regarding moving to payday filing:-
What is payday filing?
Instead of filing an Employer monthly schedule (IR348) every month, you’ll file employment information every payday in line with your normal payroll cycle.
Note: with payday filing you’ll continue to file your employer deductions and pay on the 20th of the following month.
Why is this required?
The law has changed so you must shift to payday filing by 1 April 2019. Providing us with more timely information means we can provide your employees with more certainty about their tax and benefits position (eg Working for Families Tax Credits).
Ways to payday file
Once you shift to payday filing for your business, and for your clients, you will have the following options:
- Use the Payroll returns account in myIR instead of ir-File (file upload and on-screen options will be available).
- Directly from your payday filing compatible software.
- For those under the electronic threshold, paper filing is only available from 1 April 2019
Filing electronically may now be required
From April 2019 the threshold for paper filing will change. Any account with annual PAYE and ESCT greater than $50,000 will need to file employer information, employer deductions and employee details electronically through myIR or using software.
What do I need to do now?
Now’s the time to shift to payday filing:
- Review your payroll processes, plan and schedule when to shift.
- Ask your software provider when they’ll have payday filing compatible software.
- Let us know you’re shifting to payday filing by opting in through your myIR account before the month you start payday filing.
- Liaise with your clients and let us know when they’ll shift to payday filing.
If you have any questions at all, please contact us on 09 636 3332!