Payroll providers who provide services to New Zealand businesses are preparing for the introduction of the new payday filing system, which will become mandatory in April 2019.
The providers have been working closely with Inland Revenue to make sure they can meet their clients’ needs when the changes roll out.
Those changes mean that all employers must submit employment information every time they pay staff.
According to Inland Revenue customer segment leader Richard Owen, many software providers are in the process of finalising their solutions and many others are already ready to go.
Inland Revenue provided a network ‘gateway’ for software providers to send employment information directly into Inland Revenue’s Systems. This testing tool can help resolve any compatibility issues.
“The gateway has allowed software providers to create a one-stop shop where in many cases the payday filing obligations can be completed seamlessly with just a few extra clicks,” says Owen.
“Accounting and payroll software has the ability to revolutionise business interactions with the tax system and has the potential to further reduce compliance costs.
Owen adds that Inland Revenue hopes more employers will put payday filing on their New Year ‘to-do’ list now that more providers are on board.
“This is not something you want to leave until the last minute so we’ve been encouraging customers to speak with their software provider and start payday filing as soon as possible to avoid stress close to the deadline,” says Owen.
He believes that payroll software is the easiest way to complete the task. Newcomers to the technology should research all options that might work for them.
“This includes the payday filing tool we’ve built into myIR within the Payroll Returns Account, which might suit those employers who are not quite ready to make a switch to software.”
He understands that some businesses will be wary about making yet another investment in technology, especially if they believe their business is too small.
“There are a range of lower-cost options available in the market to suit companies of all sizes.”
If that doesn’t convince businesses, Owen says that it’s fine, and there are other ways to payday file.
“We’ve designed the tool in our myIR portal to help them give us the information we need as easily as possible. A little set up time is needed but after that, most of their employment information will be pre-populated so employers can avoid having to re-enter much of the same information every payday,” Owen concludes.