New Zealand's payday reporting to become voluntary from April New Zealand's payday reporting to become voluntary from April

New Zealand's payday reporting to become voluntary from April
02 Feb 2018

The New Zealand Inland Revenue’s (IR) transformation project is now underway and is expected to have a major impact on the country’s employers.

The project introduces the concept of ‘payday reporting’ on a voluntary basis from April this year and on a compulsory basis from April 2019. Once implemented, it will be necessary to send payroll information to the IR within two days of each payroll run taking place. For a weekly payroll, for example, this will mean sending the information electronically four times a month.

Large organisations currently report twice monthly and small businesses each month. The existing FIRST system will be replaced with START, which has more user tools for PAYE Intermediaries (PIs) and is expected to be more efficient.

It was initially thought that organisations would need to interact with both systems during the transition period, primarily because student loans and child support elements are not currently incorporated into START. But the IR has now confirmed that users will only have to deal with one system and IR will manage all 'behind the scenes' reconciliations.

According to NZ Business, PIs such as iPayroll will interact directly with the new eServices or gateway (both in START) and IR will transfer any relevant data between START and FIRST.

During the voluntary period for payday reporting, employers can choose whether to continue with the current monthly reporting schedule or to adopt payday reporting. Both options make it necessary to interact with START rather than FIRST.

The current irFile system for uploading the monthly IR348 employer monthly schedule will be replaced by START eServices (myIR), although the same file format will still apply. Payday reporting can be uploaded through myIR or submitted through the new gateway services.

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.

The New Zealand Inland Revenue’s (IR) transformation project is now underway and is expected to have a major impact on the country’s employers.

The project introduces the concept of ‘payday reporting’ on a voluntary basis from April this year and on a compulsory basis from April 2019. Once implemented, it will be necessary to send payroll information to the IR within two days of each payroll run taking place. For a weekly payroll, for example, this will mean sending the information electronically four times a month.

Large organisations currently report twice monthly and small businesses each month. The existing FIRST system will be replaced with START, which has more user tools for PAYE Intermediaries (PIs) and is expected to be more efficient.

It was initially thought that organisations would need to interact with both systems during the transition period, primarily because student loans and child support elements are not currently incorporated into START. But the IR has now confirmed that users will only have to deal with one system and IR will manage all 'behind the scenes' reconciliations.

According to NZ Business, PIs such as iPayroll will interact directly with the new eServices or gateway (both in START) and IR will transfer any relevant data between START and FIRST.

During the voluntary period for payday reporting, employers can choose whether to continue with the current monthly reporting schedule or to adopt payday reporting. Both options make it necessary to interact with START rather than FIRST.

The current irFile system for uploading the monthly IR348 employer monthly schedule will be replaced by START eServices (myIR), although the same file format will still apply. Payday reporting can be uploaded through myIR or submitted through the new gateway services.

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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