Changes to the Inland Revenue Department’s payroll reporting system are intended to simplify payroll processes for New Zealand employers on becoming mandatory as of 1 April 2019.
The changes mean that payroll teams will need to file an Employment Information Schedule every payday at the start of each month rather than an Employer Monthly Schedule (IR348) as is currently the case. The new payday information filing system was first introduced on a voluntary basis on 1 April 2018.
Employers paying NZ$50,000 (US$33,743) or more per year in Pay as you Earn (PAYE) and/or Employer Superannuation Contribution Tax (ESCT) will be required to file electronically each payday, either by using their payroll software or through myIR. If PAYE/ESCT deductions are less than $50,000 (US$33,743) per year, employers can choose to file on paper. But paper filers will not be permitted to switch to payday filing before April 2019 unless they adopt an electronic filing approach.
According to Stuff, the new system is intended to make it simpler and faster for businesses to meet their tax obligations as filing tax information every payday will mean that all payroll tasks are completed at the same time. As the Inland Revenue will also receive tax information more regularly, employees will be able to access information, such as Working for Families Tax Credits, student loan repayments and Kiwisaver contributions, more swiftly too.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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Changes to the Inland Revenue Department’s payroll reporting system are intended to simplify payroll processes for New Zealand employers on becoming mandatory as of 1 April 2019.
The changes mean that payroll teams will need to file an Employment Information Schedule every payday at the start of each month rather than an Employer Monthly Schedule (IR348) as is currently the case. The new payday information filing system was first introduced on a voluntary basis on 1 April 2018.
Employers paying NZ$50,000 (US$33,743) or more per year in Pay as you Earn (PAYE) and/or Employer Superannuation Contribution Tax (ESCT) will be required to file electronically each payday, either by using their payroll software or through myIR. If PAYE/ESCT deductions are less than $50,000 (US$33,743) per year, employers can choose to file on paper. But paper filers will not be permitted to switch to payday filing before April 2019 unless they adopt an electronic filing approach.
According to Stuff, the new system is intended to make it simpler and faster for businesses to meet their tax obligations as filing tax information every payday will mean that all payroll tasks are completed at the same time. As the Inland Revenue will also receive tax information more regularly, employees will be able to access information, such as Working for Families Tax Credits, student loan repayments and Kiwisaver contributions, more swiftly too.
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
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