Changes are coming to payroll – are you compliant?
Keeping up with the constantly evolving world of business can be hard so it’s no surprise people are seeking help to ensure they are complaint in all areas – including payroll. The IRD has begun to reach out about the upcoming changes which have generated questions and uncertainty.
Being that we make it our business at Strettons to keep abreast of changes, we thought a snapshot of these may mean you can rest easy for the moment and focus your attention elsewhere.
The motivation behind the payday filing changes is to improve the more timely and accurate administration of PAYE, making it easier for businesses and employees to know their tax obligations and also any entitlements that may be available from the Government.
What are the changes?
From 1 April, the day the changes officially begin, those in charge of payroll will be required to file employment information each payday instead of just once a month.
All information must be filed online unless the businesses has total tax deductions under $50,000, they may then continue to file paper returns. More detailed information will also be required to be filed for each new employee, including their date of birth if you have it.
For the moment there is no change in filing your IR345 information monthly and the date for payment remains the same. So, you’ll still only hand over your money to the IRD once a month, or twice if you are a larger employer. There will be no requirement to file a nil return for periods where there are no payrolls.
Returns must be filed within two working days of payday or ten working days if you submit paper returns.
There are three ways to file the information – via a payroll software provider using a gateway process, by file upload via your MYIR login or by completing an on-screen form also under your MYIR login.
Not sure you’re compliant?
While change is afoot there’s nothing to fear. If you have any uncertainty about being compliant in time, give our payroll services department a call on 07 376 1700.