From 1 April 2019 payday filing is mandatory. This means that each payday employers will be required to file employees earning details to IRD.
Summary of PayDay filing
- Employers must file employment information every payday instead of monthly PAYE returns. Payments to IRD remain the same, due by 20th of the following month.
- PayDay filing provides IRD with new and departing employee contact details such as address, including date of birth.
How do I send the information to IRD?
- Directly from your payroll software
- Filing online through MyIRD login by:
- File upload or
- On-screen form
- Post a paper form (only if PAYE deductions are less than $50,000 per annum)
Let’s explore these three options in more detail:
- PayDay filing through payroll Software:
We recommend payroll software for several reasons:
- Decreased administration time
- Filing to IRD automated
- Employees setup correctly from start of employment
- Accuracy and efficiency processing payruns
- Avoid penalties for late filing
- Leave entitlements and accrual calculated automatically
- Accurate calculations for final pays
- Compliance with all payroll legislation
If you are using Xero Payroll there is minimal effect on your current process. When you post a payrun in Xero the employment information is automatically sent to IRD for you. You will need to ensure all employee information (including DOB) is accurate prior to 1st April.
If you currently don’t use Xero Payroll, we have a special discount for clients who change to Xero Payroll prior to 1 April 2019, whether you are already use Xero or not.
If you don’t use Xero Payroll and aren’t already using Xero for your business, we will contact you prior to 1 April 2019 to discuss a suitable alternative.
We are currently testing AgriSmart payroll for farmers which is a cloud-based payroll solution and also have MYOB solutions available.
2. PayDay filing through your MyIR login
If you are currently filing your PAYE returns onscreen through your MyIR login you can still do so however employment information must be filed with IRD within two working days of payday.
This IRD video explains how to payday file using online entry method
3. PayDay filing by posting a paper form to IRD
If you currently post your PAYE returns to IRD, IRD will start sending new payday filing forms prior to 1st April 2019.
Payday filing employment information must be filed with IRD within ten working days of payday, alternatively you can file twice monthly.
When is the PayDay filing information due to IRD:
|Filing Method||Filing Due Date|
|File electronically via software||2 working days after payday|
|File electronically via MyIR (online)||2 working days after payday|
|File paper return||10 working days after payday or twice monthly|
There are no changes to the payment date to IRD which is due 20th of the following month.
You can file schedular payments information as part of your regular payroll or twice monthly.
Payments made between the 1st to the 15th of each month must be filed within two working days after 15th. Payments made between the 16th to month end, must be filed within two working days after end of month.
Register for a MyIR account if you don’t already have one. You must do this yourself and involves calling IRD to activate (0800775 247).
All employers not using payroll software must opt-in to PayDay filing through MyIR prior to 1st April. Here is an IRD video showing how this can be done through your MyIR login
Consider your options. Payroll software will make payday filing seamless however does come at a cost. We have thoroughly investigated payroll software solutions to suit all types of clients, talk to us about this.
Review your business processes to ensure you have capacity and payroll capability. We recommend including payday filing as part of your current payrun process. Check you’re paying your employees correctly.
Make sure your employees understand what information will be shared with IRD.
This is only our interpretation and has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.