If you’re an employer, by now you should know that, as from 1st April 2019, it will be mandatory to file a return every time you pay your employees.
So what does this mean for you and your employees? At the moment, you send IRD a PAYE return once a month, and pay it once a month. From 1st April, you will need to file a return every payday (which may be fortnightly or weekly), but you will still only pay the IRD your PAYE amount once a month.
For your employees, there won’t be any changes, although errors in earner codes or conflicts with WINZ entitlements will be picked up earlier. This means it will be less likely that an employee who also qualifies for a benefit will need to repay thousands of dollars, if an overpayment is made and not picked up for a month or two!
For employers, life may well become easier! Most payroll software will have the necessary systems built in, and as an added bonus, you will be able to file your returns online, straight from your software, exactly the same as you can already do with GST from Xero and MYOB. You will be able to budget better for expenses, too.
You don’t need to wait till 1st April to start using this service – in fact, it’s advisable to start earlier, as the system is set up and operating now. And if you leave it till the last minute, with everyone else trying to log on at the same time – you may run into problems!
For more information on Payday filing, talk to your accountant, or go to https://media.ird.govt.nz/articles/be-ready-to-shift-to-payday-filing/ or www.ird.govt.nz/payday.