Tax Updates Bulletin: PAYE Filing Changes

In 2018, the Government passed legislation that will save businesses time and make sure they receive more timely and accurate information for calculating customers’ tax and entitlements.

This aims to give New Zealand families more certainty about what support they’re entitled to and what their payment obligations are.

The change to Payday filing will become mandatory from 1 April 2019.

Payday Filing to replace ‘Employer Monthly Schedule’

Currently, your employees’ income information is reported to IRD monthly.

With the changes, employers and payroll intermediaries will be required to submit employment information every payday instead of monthly. This replaces your ‘Employer monthly schedule’ (IR348) if you use ir-File.

Employer Deduction (IR345) filing and payment dates remains the same

You’ll need to continue filing an Employer deduction (IR345) form, and the due dates for filing and payment haven’t changed.

Key points to remember

Payday filing is voluntary from 1 April 2018 and mandatory from 1 April 2019.

You’ll also be required to provide address details for new employees, and their date of birth if that information has been supplied by the employee.

PAYE payment dates and methods of payment remain the same – all that is changing is how often you provide your employment information.

When you begin payday filing, you will no longer file an IR348. You’ll begin payday filing from the beginning of the month, because your final IR348 must cover a full month.

Until you begin payday filing, continue to file your IR348 as usual.

Still got questions? Or need support with payroll and employee taxation obligations? Get in touch, we would love to help make it easy.

We offer a free scoping of your needs to all our new customers too, no obligation. Call or email us today.