IRD PROPOSALS
Payday filing of PAYE information
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, 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 would be able to file their PAYE information each payday from 1 April 2018 and would be required to do so from 1 April 2019. The dates for PAYE payments will remain unchanged.
For examples check out http://taxpolicy.ird.govt.nz/publications/2016-other-mts-paye-reporting/proposals#payday
Other key proposals
• Reduction in the electronic filing threshold from $100,000 a year PAYE and ESCT to $50,000
• Exemption for employers above the electronic filing threshold but unable to access digital services
• Improving the processes for setting up a new employee – IR330 Tax code declaration and KiwiSaver forms will combine
• Modernising the PAYE rules and tax treatment of holiday pay paid in advance
• Payroll subsidy via PAYE Intermediary will cease at 1 April 2018.
For information on the above proposals check out http://taxpolicy.ird.govt.nz/publications/2016-other-mts-paye-reporting/proposals#payday
ARE YOU KEEPING UP-TO-DATE WITH PAYROLL LEGISLATION?
If you are processing payroll in your business it is your responsibility to keep up-to-date with NZ Payroll legislation. The NZPPA – NZ Payroll Practitioners Association has a free weekly newsletter filled with payroll news, tips and advice including information from the IRD and MBIE. Sign up to subscribe via their website http://www.nzppa.co.nz/ Better still, enrol to become a member and enjoy the support and benefits!
ALLOWANCES – ARE THEY TAXABLE OR NON-TAXABLE?
It is extremely important for employers to be aware if an allowance is taxable or not. Holiday pay, bonuses, allowances, and special benefits paid to employees such as loss of earnings compensation or life insurance premiums are usually liable for tax. Payroll administrators need to know if an allowance is taxable or not, and be aware of implications on holiday pay calculations and KiwiSaver on taxable allowances.
For further information, check out the following link or contact the Accounted4 Payroll team for clarification.
http://www.ird.govt.nz/payroll-employers/make-deductions/staff-benefits/
Payroll team at Accounted4
Anne Bland Extn. 831
Carolyn Lawrence Extn. 837
Maree Craig Extn. 825
Kathryn Leong Extn. 859
