What is it?
Payday filing (sometimes referred to as payday reporting) is a new IRD initiative that requires employers to submit PAYE information each time they pay their employees. This is done either:
a) automatically via a direct integration between your payroll software and IRD, or
b) by you manually entering information into IRD Account Lookup, or completing manual paperwork (!) each payroll day
Payday filing is currently optional, but it will be mandatory from 1 April 2019.
You’ll still make your PAYE Payments to the IRD as you currently do – there’s no change to when you pay them, just when you file the paperwork with them.
What does it mean for me?
Rather than submitting PAYE returns once a month, your PAYE information will need to be sent to IRD after every pay.
Don’t worry most decent payroll systems will handle this for you.
Some of the payroll systems we recommend, like FlexiTime will do this automatically, giving you zero touch payday filing compliance. Payday filing will be mandatory from 1 April 2019 but it’s already live in FlexiTime, so you can be up and running well before then.
Others like Xero are still building their capability to handle payday filing, but will be all set to go by the change over date.
Why are they making the change?
Having more timely information means IRD can work out tax and entitlements fast and accurately, providing more confidence to companies and employees that they are paying and receiving the correct amounts throughout the year.
Filing becomes part of your normal payroll process and fully automated, so you don’t need to remember to send returns in at the end of the month.
When can I start from?
You can make a start whenever you like—get in touch with us today if you want to make the switch now.
Comments are closed.