All employers must be payday filing from 1 April 2019.
From 1 April 2019 employers will be included in one of the following groups for delivering their employment income information to IRD:
- The online group
- The non-electronic group
- The new employer group
The Online Group
- Employers who withheld $50,000 or more of PAYE and ESCT for the preceding tax year; or
- All payroll intermediaries; or
- Employers who submit their employment income information digitally (via payroll software or Inland Revenue’s website)
Method Of Filing
The employment income information is filed via payroll software or IRD’s myIR online services.
The due date is two working days after payday except for certain special payments. “Payday” is defined as the day an employer makes a PAYE income payment to an employee.
1. If the gross annual PAYE (including ESCT) was less than $500,000 in the previous tax year, the payment is due by 20th of the following month.
2. If the gross annual PAYE (including ESCT) was more than $500,000 in the previous tax year, the payment is due by 20th of the month or 5th of the following month.
Exemption From Filing Electronically
In some instances IRD may grant employers exemption from the requirement to file electronically after taking the following into account:
- The nature and availability of digital services, including how reliable the services are
- The employer’s capability when it comes to using computers
- The cost to the employer of delivering information electronically
The Non-Electronic Group
- Employers who withheld less than $50,000 of PAYE and ESCT; and
- Do not file electronically through myIR or payroll software.
Method Of Filing
The employment income information is filed in paper form, or if the employer chooses to file electronically they can switch back to paper filing.
- Within 10 working days after payday; or
- Twice monthly, being 10 workings days after 15th and 10 working days after the end of the month.
If the gross annual PAYE (including ESCT) was less than $500,000 in the previous tax year, the payment is due by 20th of the following month.
The New Employer Group
An employer is included in the New Employer Group if they become an employer in a tax year regardless of how much PAYE and ESCT they withhold during the period.
Method Of Filing
- The New Employer Group is permitted to file on paper for the first six months of becoming an employer, despite withholding more than $50,000 of PAYE and ESCT. The six month period begins on the date in the tax year on which the employer starts employing employees.
- If a New Employer chooses to use electronic filing in the first six months they immediately fall within the Online Group.
- Following the six month period, the amount of PAYE and ESCT withheld determines which group the New Employer is in.
The filing deadline is either within two or 10 days after payday, depending upon which filing method is used.
The payment deadline is the same as for the Online Group.
Employment Income Information
With payday filing, employers will no longer have to file an Employer Deductions form (IR345). The new form will be similar to the IR348 Employer Monthly Schedule; however employers will also need to provide the following:
- ESCT (Employer Superannuation Contribution Tax) for each employee
- Pay period start and end dates
- Pay cycle, e.g. weekly, monthly, ad hoc
- Payday date
- Additional information regarding new and departing employees