One significant change is called Payday Filing which impacts on employers and the way they file their employer reports.
Currently, most small businesses that employ New Zealand employees are filing their returns (and paying their withholdings) on a monthly basis.
The change to Payday Filing will mean that employers will be required to file their employer reports at the end of each pay period. Therefore, if you are on a fortnightly payee, you will be required to file an employer report on a fortnightly basis at the end of each pay period.
Please note, your actual payment dates are not scheduled to change. You will be required to pay your monthly withholdings and Kiwi Saver deductions on the 20th of the following month as is the case now.
The advantage of this method is that there will tended to be a manual step between running your employer reports on a monthly basis and entering that information into Inland Revenue’s system.
Payday Filing will facilitate the transfer of the information by way of a push of a button from your existing payroll software into Inland Revenue’s new system.
Under the Payday Filing process, employers will:
- file their employment information schedule after each pay day instead of the employer monthly schedule (IR 348);
- provide the date of birth and addresses for new employees; and
- submit the employment information schedule within 2 days of paying staff.
This method will become mandatory on 1 April 2019 however employers can choose this method of filing their employer reports from 1 April 2018.
If you do want to start Payday Filing earlier you will need to contact Inland Revenue directly. If we process your payroll, simply contact us or we will contact you to discuss your preference.
If you would like to have a quote for us to process your New Zealand payroll, simply let us know and we will have a competitive price to you shortly after!
The information in this article is indicative of NZ tax rules and changes and not intended to be complete for all intents or purposes and does not constitute advice. It is recommended that you obtain professional advice, suited to your particular circumstances, from us before acting on anything you read.