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Payday Filing

It doesn’t have to mean extra work for the Employer

If you are an employer, you’ve likely heard about Payday filing by now.  If you haven’t, you best get up to speed quickly (go to our website and search Payday), as it will affect you from 1 April 2019.   For the rest of us who have been following Payday developments over the last 18 months, are you ready?  D-day isn’t far away!

Despite assurances from payroll software developers that updates to incorporate Payday filing will be released well in advance of 1 April 2019, it appears most won’t be released until February.  Therefore the following comments may not be based on actual experience using the software.

  1. Costs – in most cases if you are using a 3rd party to process your payroll, cost will increase, especially if you run weekly payrolls.
  2. If you’re managing your own payroll you will need a MyIR login, whether you’re going to use software or not– it would be good to register now to avoid the rush.
  3. Efficiency – If you are pushed for time, using payroll software will save you considerable time and therefore can be the most cost efficient option.
  4. Software – we have reviewed a number of payroll software packages and generally all currently provide similar functionality.   Most of them offer to be Pay Agents  which means that after the pay run is approved, the “software” then sends files to the bank and Inland Revenue, and payslips to employees; the gross pay is deducted from your account, your employees are credited with their net wage, and Inland Revenue deductions are paid each 20th of the month. In addition, I like the thought that (if I wanted), I could have employees complete timesheets on an app on their phone, I do a quick review and then approve. Once approved, the software takes care of the rest, giving me more time to get back to business.
  5. As with most software products, there are pros and cons to each product.  We cannot be experts in all payroll software products, so we plan to use MYOB ACE, MYOB Essential, Xero and PaySauce to process payrolls we do for our clients. These are based on cost and functionality.
  6. It is still possible to paper file, within limits, so you may need to check that out carefully if you’re one of those folk.

If you would like to discuss Payday filing and how it may affect you, don’t hesitate to give us a call. Please don’t leave it until March though, as there are a number of options out there, and sometimes when it becomes a rushed decision, there may be regrets later.

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