Get ready for Payday Filing
3 May 2018
As of 1 April this year businesses can choose to report payroll information every payday instead of monthly. This is voluntary from 1 April 2018, and compulsory from 1 April 2019.
You need to start thinking about how and when you’ll opt in.
How payday filing works
Payday filing is an online option for submitting your employment information to IRD. You’ll need to submit an:
- Employment information schedule after every payday, instead of an IR348
- IR345 form and payment. The due dates for paying and submitting the IR345 stay the same.
There are three ways you can file online:
- direct from your payroll software
- by file upload in myIR, and
- on-screen in myIR.
If you submit employment information directly from your payroll software, you still need to file an IR345 form.
Talk to your software provider to find out if you can file from your software or file upload in myIR.
As well as the information you would have provided on your IR348, you’ll be required to ask new employees for their date of birth and a contact address. If your employee provides these details you need to submit them to IRD. You don’t need to ask existing employees for these details.
How to register for payday filing
Have a chat with your clubs accountant and/or payroll software provider to see what will work best in your situation. Many payroll software providers will be making changes to ensure this all happens for you by the time it becomes compulsory next year, but you need to take the time now to understand what is required.
What happens once you've registered for payday
When you’ve registered for payday filing, a Payroll returns account will be created in the My business section of your myIR account. This is also where you’ll file your IR345 form.
If you have someone who files your IR348 online for you, this access won't move across to payday filing. You’ll need to reset their access once your Payroll returns account is showing in myIR. You can only do this if you’re an account owner.
Payday filing starts on the 1st of the month after you choose to start. You’ll be able to file your last IR348 in your Payroll returns account, along with your first Employment information schedule.
Once you payday file, you can only change back to monthly reporting in limited cases and with our approval.
Employers and payroll intermediaries must payday file from 1 April 2019
You must file online if you make PAYE/ESCT deductions of $50,000 a year or more. If your total PAYE/ESCT is less than $50,000 for the previous year ended 31 March you can:
- file paper returns, or
- file online.
Clubs New Zealand strongly recommends your club talks to your accountant and payroll software provider as soon as possible to ensure you understand what you need to do and what your obligations are prior to 1 April 2019.
(SOURCE: Inland Revenue Department, 16 April 2019, retrieved www.ird.govt.nz)