Employers - change is coming
From 1 April 2019 employers must:
- file employment information every payday instead of an Employer monthly schedule (IR348)
- provide new and departing employees' address information, as well as their date of birth - if they have provided it to you, and
file electronically (from payday compatible software or through MyIR) if your annual PAYE/ESCT is $50,000 or more. If it is lower, you can file by paper return.
-you do not have to make a payment each payday. The payment is still due on 20th of the next month.
-you do need to register for payday filing by March at the latest. You can do this at you online MyIR account.
No-one likes change, and this can sound a bit scary, but in fact, this change can make things easier. Most payroll software providers will be able to automatically upload all the information IRD requires each payday. In most cases, there will be no need to log into the IRD website to file the PAYE, which is what must be done currently. Some payroll software providers are already providing this service and those who are using these providers can switch to payday filing now.
All the providers we work with have assured us that they will be ready for 1 April.
The other good thing is that employers will be able to see their PAYE information in their MyIR account on their Business tab, where GST information is currently stored. All the information will be in the same place.
There has been some concern that filing needs to be done within 2 days of running the payroll, (if you are filing electronically) but this is not really problem when the payroll software provider is automatically filing for you. Those filing paper returns will get a little longer.
At BusinessBase we certainly recommend using software to process your payroll. We have several partners and can recommend the best, most cost effective and most functional software to suit your businesses’ needs.
What if you don’t have a MyIR account with Inland Revenue? This is easy to do, and we can show you how to get one and how to use it. We can also help you to negotiate registering for payday filing.
So get in touch now to make sure you are ready. Our friendly staff can guide you through this change so you can get back to business.