Payroll filing requirements will undergo a step change when Payday filing becomes compulsory on April 1, 2019. This means instead of filing an Employer monthly schedule (IR348) every month, you will file an Employment information schedule online every payday.
iPayroll, as New Zealand’s largest PAYE Intermediary, with annual payrolls processed through this service of over $4 billion, will ensure employers using iPayroll are seamlessly integrated to Payday filing. iPayroll currently manages PAYE for over 96% of our clients, all of whom will be included as part of our standard Payday filing process.
For the remaining 4% of self-managed PAYE clients, tools will be provided to enable them to comply with Payday filing requirements themselves. For these clients, it may be timely to reconsider the way in which they will be managing their PAYE going forward. iPayroll would be pleased to assist them to join our PAYE Intermediary service, should they wish to do so in advance of Payday filing becoming compulsory.
For more information, please read on.
What is Payday filing?
Employers currently report their employees’ PAYE information to IR on a monthly basis via the Employer monthly schedule (IR348), regardless of how frequently they pay their staff. Under Payday filing, employers will be required to file PAYE information within two days of each payday.
Why was it introduced?
The IR's systems and processes are undergoing redevelopment as part of its Making Tax Simpler initiative, to "take advantage of modern technology". Consequently, the employee PAYE information will in future be required to be reported to IR each payday.
When does Payday filing commence?
Payday filing became available on a voluntary basis on April 1, 2018. The requirement for employers to file PAYE information each payday will become compulsory as from April 1, 2019. However iPayroll will be implementing voluntary Payday filing effective for all PAYE intermediary clients prior to April 2019. Further details will be advised in due course.
What are the benefits?
Employees' PAYE information will be filed directly to IR by iPayroll as part of our clients’ regular payroll cycle. This process will ensure IR has the most up-to-date information at hand to work out tax and other entitlements more accurately.
Does Payday filing impact the timing of tax payments made to IR?
No. The due date for paying PAYE and other deductions to IR and filing the IR345 Remittance will remain unchanged. iPayroll will continue to manage this process for our PAYE intermediary clients with payments continuing to be made on their due dates.
What has iPayroll been doing to prepare?
In addition to liaising closely with IR and other stakeholders, our team has been working hard to ensure our payroll system will seamlessly deliver full compliance ready for the go-live date.
This process includes considerable system testing to ensure any potential issues are addressed and disruption to clients is avoided before Payday filing becomes compulsory. We will be communicating individually with customers as their transition to the new filing process progresses.
What about the notices employers are receiving from IRD?
In the lead up to the implementation of Payday filing, IR is issuing communications to employers that may be raising questions for some –"am I compliant?", "what do I need to do?".
Employers who are iPayroll PAYE intermediary clients can rest assured we have your payroll system requirements well in hand. All necessary changes to the filing process will be fully managed at our end. For self-managed PAYE clients tools will be provided via our system to enable you to meet the Payday filing requirements.
What do employers need to do?
iPayroll is already handling the PAYE reporting requirements for the vast majority of our customers. For those customers, the implementation of Payday filing will be seamless and we will clearly communicate any changes that may need to be made in due course.
For those iPayroll customers who are currently filing their own PAYE reports, we recommend you consider transferring to our PAYE Intermediary service so we can take care of your Payday filing requirements for you each payday. There is no charge to do this. To join this service please complete the IRD PI Linking form (IR 920) which you will find on your Dashboard here;
Reports > Setup > PAYE Intermediary
Please complete items 6 to 9 only. We will complete item 5
Once you have completed this please return it to us by email at email@example.com
Or send by post to:
PO Box 25-216
Can we be of further assistance?
Our highly-trained and friendly support team is available to answer all enquiries and provide whatever assistance is required in regard to Payday filing and all other payroll system matters.
In addition to looking specifically at Payday filing, we recommend existing or potential customers take this opportunity to review their current payroll setup with us as we have released many new features and enhancements over the past year which you may not have seen.