Payday Filing

Since 1 April 2018 businesses have been able to opt to file their employment information with each payday rather than monthly. 

From 1 April 2019 payday filing will be compulsory. Furthermore, if your PAYE/ESCT deductions are more than $50,000 per year, you will be required to file online from 1 April 2019.  If your PAYE/ESCT deduction are less than $50k a year, you will have the option of either filing online or submitting with paper returns.

How do you make sure you are ready?

• Ensure that you are using a payroll system to process your pay runs
• Check whether your payroll system is compatible with payday filing
• If you use a payroll intermediary, check with them to make sure they are ready for the switch to payday filing
• If you process your payroll internally, make sure the person who processes your payroll is aware of the changes and that they have a plan to transition to payday filing by 1 April 2019.

How to choose a good payroll system

There are several good payroll systems available on the market. Determining the right payroll system will depend on the nature of the business and the size and complexity of its payroll.

When assessing your options for a payroll system it is important to consider:

• Whether the payroll system interfaces directly with your accounting system
• Whether the payroll system compatible with payday filing requirements
• Whether the payroll system will allow you to file online directly to the IRD

Further information on payday filing requirements can be found on the IRD website at the link below:

IRD: http://www.ird.govt.nz/payroll-employers/returns-payments/payday-filing/payday-filing.html

If you require further information on payroll system options, please contact the team at Crux for a free consultation meeting.