To help New Zealand business owners understand the changes coming to how they file employees’ payday information, Inland Revenue is conducting more than 300 seminars around the country.
From April 1 2019, all employers must file employment information every payday, which is known as payday filing. The changes are a major overhaul of payroll reporting, so Inland Revenue has arranged the seminars over the next two months to help employers understand the new requirements.
“April might seem a long way away but adjusting to a new payroll system is not something you want to leave till the last minute,” says Inland Revenue community compliance manager Corey Sinclair.
“Inland Revenue’s systems are ready and waiting to receive the payday information but employers that use software will need to check that it’s compatible first.” The seminars will guide attendees and show how payday filing works, as well as how the changes could affect workflows.
“Seats are filling fast for these sessions and new events have already been added to meet the strong demand. It shows employers are eager to quickly get up to speed with the new requirements,” Sinclair says.
“Payday filing is a great opportunity to integrate tax into your regular business processes and takes away some of the extra steps.”
As of August 2018, more than 400 employers had made the move to payday filing, but there are still many thousands more that also need to do so before the April 1 deadline.
Businesses that use software which is already compatible with Inland Revenue’s systems will only notice small changes when filing. The seminars will also show attendees how they can use payday filing in ways such as file upload, onscreen in myIR, or on paper.
“Inland Revenue’s systems for receiving payday information are up and running, so companies who want to can start filing straight away. If they’re using software they need to make sure it’s compatible first,” adds Inland Revenue customer segment lead Richard Owen.
Employers who deduct $50,000 or less in PAYE and Employer Superannuation Contribution Tax (ESCT) will be able to file on paper, though only from April 2019. All other employers will need to file electronically.
“The access to more timely employment information will also allow Inland Revenue to provide more certainty around an employee’s social entitlements such as Working for Families Tax Credits,” Sinclair concludes.
Businesses can visit www.ird.govt.nz/payday to find out more and register for a seminar.