Payday filing of PAYE will become mandatory from the first of April 2019 for employers above the electronic filing threshold. This means that if you pay $50,000 or more of PAYE or ESCT per year then you must move to payday filing if you have not already done so.
It used to be that employers reported PAYE information about their employees to Inland Revenue on a monthly basis regardless of how frequently they pay their staff but starting April 1 2019 this is going to change.
Inland Revenue’s systems and processes are being redeveloped to take advantage of modern digital technology. The PAYE information-filing process will be integrated into the payroll software that many employers use to pay employees.
Employers would then file their PAYE information each payday directly from payroll software. All payroll intermediaries and employers using payroll software would be required to file their PAYE information by the second working day after payday. The due date for PAYE information from other employers would be seven working days after payday.
How might this effect you?
It depends on whether you meet the Electronic Filing Threshold.
If so you will need to upgrade to a Payday Reporting compliant payroll system and review some of your payroll procedures.
Employers under the threshold may maintain a manual payroll system but would be required to file their PAYE manually within 7 days of the payday.
My recommendation is if you are not running a computerised payroll system already then you should get onto that ASAP. Even if you’re below the threshold we would advise using a computerised system because you will be filing PAYE every time you pay your staff which could double or quadruple the frequency of PAYE filing, which is of course much quicker and easier with good software.
If you already have a computerised payroll system, then you should make sure it is compliant
In either case please feel free to contact Kerrin at Green Mouse for advice on 07 827 7119. If you need help setting this up or need some instruction on how to use it, we can help.