What does this mean to you as an Employer?
NZ Parliament has passed legislation enabling payday filing. This initiative changes the way businesses report on employee payments such as salary or wages, pay as you earn (PAYE) and other deductions (EMS). Under payday filing this payroll information will be sent electronically, directly to IRD every payday rather than monthly as is presently the case.
Starting 01 April 2019 all employers must payday file?
Employers whose PAYE and employer superannuation contribution tax (ESCT) deductions are $50,000 or more a year must file online.
If your PAYE and ESCT deductions combined are less than $50,000 a year, you can choose to file paper returns.
If you are eligible to file paper returns, you can choose to either:
file the Employment Information Schedule within 10 working days of paying staff, or
file two (2) Employment Information Schedules — on the 15th of the month and the last day of the month.
As payday filing will require either an upgrade or replacement of your existing payroll system, you should start reviewing your requirements now.
Please talk to us if you need to choose a payroll system.