From 1 April this year businesses are required to file their employment information in line with each payday rather than on a monthly basis. The aim is to simplify the filing process by matching up IRD and business requirements.
To take advantage of this you must file online. You can either submit directly from your payroll software or use MyIR.
If your PAYE/ESCT deductions are more than $50k a year, you must file online from 1 April 2019. If your PAYE/ESCT deductions are less than $50k a year, you have the option of filing online or continuing with paper returns from 1 April 2019. Payday filing will be due within 2 working days of payday.
It’s important to note that there is no change to the due dates for monthly payment of PAYE or other deductions to the IRD.
So what do you need to do?
- Make sure that you are using a payroll system to process your pay runs
- Check if your payroll system allows you to file online directly
- If you use a payroll intermediary, check with them when you will be switching to payday filing
- If you run your own payroll, make sure your payroll staff are aware of the changes and put a plan in place to make the switch by 1 April 2019
Which is the best payroll system
There are several good payroll systems available in the market. Some give you more autonomy, others are payroll intermediaries where they pay and file for you. When looking at options:
- Make sure that the payroll system interfaces directly with your accounting system
- Make sure that the payroll system is going to allow you to comply with Payday filing
- Decide whether you pay the PAYE to the intermediaries at the time of the pay run, or whether you pay the IRD directly.
- Check if the payroll system will allow you to file online directly to the IRD.
If you need further information, refer to the IRD website, or discuss your options with your business consultant, accountant, or other trusted advisor.