Check if you are ready for Payday filing in 5 steps

Payday Filing In 5 Steps

In 2019 the Inland Revenue Department (IRD) of New Zealand will introduce comprehensive changes to the way all businesses need to run their payroll services.  These changes are mandatory for all businesses and will fundamentally change the way you do payroll. Are you ready?

All employers need to ensure they are compliant. The new payday filing requirements issued require that all employers will complete employee payments to the Inland Revenue (IRD) every pay run. So if you have weekly, or fortnightly pay runs you now need to submit all details to the IRD on that pay run rather than the end of the month.

To facilitate this increase in the frequency of reporting a new seamless connection between IRD and your payroll system is needed. As an employer, it is your responsibility to either upgrade or replace your payroll system by 1 April 2019 in order to comply with their new reporting obligations.

So are you ready? We have created a handy 5 point checklist for you to ensure you are ready for the changes coming.

  1. Do you pay more than $50,000 in wages each year? If Yes you are required to comply with the new payday reporting requirements.
  2. Do you submit to the IRD via csv file? If you answer Yes, you will no longer be able to submit electronically from 1 April 2019
  3. Does your software automatically send the information to the IRD for you? If yes then you need to update your software to be compliant with the new IRD system as of 1 April 2019.
  4. Do you use a third party system for your payroll? If yes contact them immediately to ensure they have a working solution in place now and are ready.
  5. Do you pay Kiwisaver to your employees?

If you answered Yes to any of the above points then you need to ensure you are ready as the obligation is with your business to comply. Contact Tandem NZ to discuss what you need to do and to check if your existing payroll systems are ready for the changes.