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Payday Filing of PAYE is Coming

Employers currently report PAYE information about their employees to Inland Revenue on a monthly basis regardless of how frequently they pay their staff.

Inland Revenue’s systems and processes are being redeveloped to take advantage of modern digital technology. Under the proposed changes, 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. Employers above the electronic filing threshold (see below), 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.

Under the proposed changes, employers can VOLUNTARILY file their PAYE each payday from 1 April 2018.

From 1 April 2019 they will be REQUIRED to do so


How might this effect you?

Employers with $50,000 or more of PAYE and ESCT deductions a year (electronic filing threshold) will be required to conform to these new regulations sometime between the voluntary opt-in date of 1 April 2018 and the mandatory compliance date of 1 April 2019.

This means you will need to upgrade to a Payday Reporting compliant payroll system and review some of your payroll procedures.

Employers under the threshold will may maintain a manual payroll system but would be required to file their PAYE manually within 7 days of the payday.

My recommendation would be if you are not running a computerised payroll system already then you should look to do so maybe from 1 April 2018 so you get used to electronic filing.

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