The new payday filing system works best for employers with payroll software and Inland Revenue has been working closely with the providers to make sure they’re well placed to meet their clients’ needs when it becomes mandatory in April.
This is when all employers will be required to submit their employment information every time they pay their staff.
Customer segment leader Richard Owen says a few software providers are already up and running and many more are in the process of finalising their solutions.
“Now more providers are on board, we’re hoping employers will put payday filing on their New Year to-do list. This is not something you want to leave until the last minute so we’ve been encouraging customers to speak with their software provider and start payday filing as soon as possible to avoid stress close to the deadline.”
“Using payroll software is the simplest way to complete the task so I would encourage newcomers to the technology to take some time to research all available options. This includes the payday filing tool we’ve built into myIR within the Payroll Returns Account, which might suit those employers who are not quite ready to make a switch to software.”
Inland Revenue has provided a network ‘gateway’ for software providers to feed employment information straight into its systems. It guides them through testing and will help resolve any compatibility issues.
“The gateway has allowed software providers to create a one-stop shop where in many cases the payday filing obligations can be completed seamlessly with just a few extra clicks,” Mr Owen says.
“Accounting and payroll software has the ability to revolutionise business interactions with the tax system and has the potential to further reduce compliance costs. There will be some businesses wary of making another technology investment or think their business is too small to use software but there are a range of lower-cost options available in the market to suit companies of all sizes.”
The tool in the myIR portal helps businesses give IRD the required information as easily as possible. A little set up time is needed but after that, most of their employment information will be pre-populated so employers can avoid having to re-enter much of the same information every payday.
Find out more about payday filing and all the options available at www.ird.govt.nz/payday.