What is PayDay Filing

Payday Filing is one of the New Zealand Inland Revenue’s (IR) digital transformation projects the changes the way you send them your payroll information.

Effective from 1 April 2019, it is mandatory to send IR the data following each time you pay your employees:

• Employment information (the pay details of your employees)
• Employee Details (new and departing employees)

  IMPORTANT: Since PayGlobal does not yet handle employee detail updates via file upload. Any employees who opt-out of KiwiSaver will still need to be reported to the IR using the KiwiSaver Employment Details (KED) report, i.e. PGPRTAXA022/023 reports.

Making Payments to IR

When to pay IR

If your gross annual PAYE, including ESCT (employer superannuation contribution tax) is less than $500,000; then you must pay IR by the 20th of the following month

If your gross annual PAYE, including ESCT (employer superannuation contribution tax) is more than $500,000; then must pay as follows:

• for wages or salary paid between the 1st and 15th of the month, the PAYE is due by the 20th of the same month
• for wages or salary paid between the 16th and the end of the month, the PAYE is due by the 5th of the following month

Regardless of above you can also choose to pay more often. IR caters for the PAYE and other deductions reported in your payday data to also be paid at the same day you file your Payday data.

IR automatically generates an Employment deductions (IR345) to show you how much to pay IR for PAYE and KiwiSaver.

You no longer need to run the PGPRTAXA021A - Employer Deductions (IR345 – v0003) as IR no longer provide a facility for you to upload the resulting export file. However you may still find running this report to view the 'readable' report useful to identify what you owe in advance of the IR's auto generated IR345.

Reporting Due Dates

You must file your ED/EI files within two business days of "pay day".

For example, if your payment date was Wed 17th April 2019, your Due Date will actually be Tuesday 23rd April because Friday 19th April 2019 (Good Friday) and Monday 22nd April (Easter Monday) are both public holidays.

What happens if I file late

IR’s approach to enforcing compliance is flexible and recognises that it will take time for some employers to adopt payday filing. For each tax year the IR take the following approach:

• If at least one pay is filed late during the “month”, the employer will receive an Education letter (i.e. Aug 2019)
• If at least one pay is filed late during the a second month (doesn’t have to be consecutive months), the employer will receive a Warning letter (i.e. Sept 2019)
• If at least one pay is filed late during the a third month (doesn’t have to be consecutive months), the employer will be instantly fined $250 (i.e. Oct 2019)
• For each month remaining in the tax year - if at least one EI file is filed late during a month the employer will be instantly fined $250 - i.e. all pays in Nov 2019 are filed on time but then one pay is late filed in Dec 2019).
• This is the same for all remaining months of the tax year

For more details see Due Dates

How do I send IR my data

There are 3 options:

1. MYOB PayGlobal - FileUpload solution
2. MYOB PayGlobal - Gateway solution
3. Direct entry via myIR business account