Payroll – Don’t Get Caught Out

Ird Payday Integration Deadline New Zealand

As of 1 April 2019 the way companies have to report payroll to the IRD is significantly changing in New Zealand.  All employers need to ensure they are compliant. The new payday filing requirements mean employers will need to complete employee payments to the Inland Revenue (IRD) every pay run. A new seamless connection between IRD and your payroll system is needed to handle the increased reporting frequency.

This means every affected employer will need to either upgrade or replace their payroll system by 1 April 2019 in order to comply with their new reporting obligations.

As an employer if you file Employee Monthly Schedules(EMS) you will no longer need to through payday filing.

Any new employee will be able to complete a single form that combines their Tax code declaration(IR330) and Kiwisaver (KS2) deduction together.

Without exception, all New Zealand employers must start payday filing before 1 April 2019. If you have $50,000 or more of PAYE and superannuation contribution tax (ESCT) deductions each year then you will need to ensure your payroll system is payday filing compliant and review some of your internal payroll procedures.

When combined if PAYE and ESCT deductions are less than $50,000 a year you will have the option to file online or file paper. However, you will need to choose from the below-filing methods if you choose paper:

  • file all Employment Information Schedules within ten working days of paying staff, or;
  • file two Employment Information Schedules on the 15th and last day of each month.

Tandem NZ is one of the few companies in New Zealand who has successfully connected to the new IRD systems ensuring the complex payroll filing compliance is in place for its customers.

Talk to us about your payroll integration or Payroll upgrade options now to minimise disruption and ensure you are ready for 1 April 2019.

There is not that much time left until 1 April 2019 is that there are 50,000 New Zealand employers who need to transition into PayDay filing. You need to upgrade or replace your system and you need to start looking at this now. before it is too late.

At the same time we suggest you consider whether it is time to update your accounting and payroll software in general. Do they contain all the features you need now? Are they forcing you to have time-consuming manual processes that could be automated?

With Tandem NZ as your partner, you can start the review of your systems and what you need well before the deadline so you have time to consider your options before the inevitable last minute rush to be compliant with the new IRD rules.

Speak to our payroll integration specialists to find out more on 0800 823 366.