Payday Filing Is Here — Are You Ready?
It’s here! And we’ve got you covered. Learn more about what we‘re doing to prepare you for the big shift. Spoiler alert: it’s simple, easy and you won’t feel a thing!
Tax is a hot topic lately and there’s been a constant conversational buzz at the Thankyou Payroll offices about it. While tax might not be the sexiest ‘current affairs’ topic, it affects all of us, and getting it right is very important for anyone who runs a business.
Two pretty big things are happening in the tax realm: the government has launched a Tax Working Group to analyse NZ’s taxation structure, and the Inland Revenue is introducing Payday Filing — a significant change for anyone running payroll. Many businesses will be affected by payday filing, including anyone doing digital payroll for the first time. Here are some things you will need to know about the upcoming change.
From 1 April 2019, employers are obligated to send an employment information schedule to Inland Revenue after every payday. This replaces the current Employer Monthly Schedule (IR348). So if you pay staff weekly, you will need to file the information weekly, possibly increasing your workload. Also, if your business pays more than $50k PAYE in a year, online filing will now be mandatory.
If you’re a client with Thankyou Payroll, we’re already set to keep you compliant in regards to Payday Filing. The changes will be virtually unfelt as we continue to do all the filing for you. Nice, eh?! Even better, it’s a feature included with our current payroll and tax services that we already provide. We know it’s a lot more work for businesses and our goal has always been to save you time and effort. It’s simple, easy and free to sign up and to let us take the pain outta payroll!
With Payday Filing, IRD expects to receive more timely and accurate information. Employers will have 2 working days after every payday to submit the information online through a new Payroll Returns area in their myIR online portal. There are also extra details Inland Revenue will now require, such as: the ESCT (employer superannuation contribution tax) for each employee; pay period start and end dates; pay cycle (weekly, fortnightly, ad hoc); and payday date. The government is also wanting additional information on new and departing employees (ie. date of birth, & contact info if known).
Employers may find it easier to use a payroll intermediary and software like ours, and making that switch is quite simple. We truly enjoy helping you manage the complications of tax and payroll. Sign up is free and easy to do. Our excellent support team are always just a phone call away if you have more questions.
Thankyou Payroll is a social enterprise providing online payroll and PAYE filing services for businesses and charities in New Zealand. If you want to be part of something more than just payroll, sign up to Thankyou Payroll here.
