As part of the Inland Revenue drive to simplify the tax system, from 1 April 2019, employers will be required to submit PAYE information each payday, in contrast to the current monthly returns (or for some bigger organisations, bi-monthly).
So how will it work?
If your PAYE/ESCT is more than $50k per annum, you will need to file electronically
If your PAYE/ESCT is less than $50k per annum, you can file on paper or electronically
Paying your PAYE still remains the same (20th of the month); it’s just the filing of returns that will change.
Increasingly, employers are choosing to use software to manage their tax filing:
- Direct from the software – this service interfaces directly with Inland Revenue to let businesses file their payroll information without having to upload any files;
- By creating files to upload to myIR in the Payroll returns account
- To collate data required to complete input onscreen in myIR in the Payroll returns account
If you are filing electronically, you have to submit employment information within two working days of paying your staff.
If you’re a paper filer, you have to get your returns to Inland Revenue within 10 days (there are some limited exemptions).
We suggest you start planning for this now, especially if you are still using a manual process to prepare your payroll. If you have any concerns or queries, call us for a chat, we’re here to help.