IRD have introduced Payday filing.This is currently voluntary, however from 1 April 2019 it will be compulsory.
Employers are currently filing the monthly Employment Schedule (IR348) and Employer Deductions (IR345) by the 20th of the month.The IRD now requires employers to file the Employment Schedule the day after you pay your employees.
Payment for PAYE and deductions will remain due on the 20th of the following month.
There are three ways you can file the information online:
- 1. Directly through your software provider.Check with your provider to ensure their system will be ready by the 1st of April 2019 for the new changes.Your system should prompt you to do this once you have paid your employees.
- 2. File Upload in myIR.If you currently use this option to upload the monthly IR348 through the IRD website, you will need to check with your provider that you will be able to upload this information weekly.
- 3. On-screen in myIR. This option is for those who complete the monthly IR348 online through myIR. You will need to complete this weekly.
With any of the above options, you need to file the Employment Schedule by the second day after paying wages.For example, if you pay your employees on Wednesdays, IRD need to have received the employment schedule by each Friday.
If you do not have a software provider or have specific reasons for filing paper returns, you can continue to do so BUT IRD need to have received the Employment Schedule by the seventh day after pay date. For example, if you pay wages on Wednesdays, IRD need to have received the return by the following Wednesday.
This change will unfortunately create more work for the payroll administrator.If you wish to discuss what is best for you, please feel free to call your Client Manager.