IR PAYDAY FILING – Checklist for employers using software
Payday filing
Payday filing is where employers provide IR (IR – Inland Revenue’s new name) with employment PAYE information every payday – currently voluntary, and it becomes mandatory from 1 April 2019.
If you use supported software
- Talk to your software provider about what options they will offer and when they will be ready. Make sure you understand any implications their release schedule will have on your business
- Consider any cost implications as a result of moving to payday filing.
- Find out what support your software provider will offer you as you move to payday filing
If you have a bespoke software
- Make sure the right staff in your business know about payday filing and are in touch with IR
- Email IR at PaydayReporting@ird.govt.nz to find out what you need to do to make sure your system is compliant.
Review your business processes
There are a few things every business should do to be ready for payday filing:
- Make sure the right staff in your business know about payday filing, especially your payroll and finance staff
- Check you are paying your employees correctly Review your payroll processes – plan and schedule when to shift to payday filing
- Review your delegations in myIR
- Review your on-boarding processes for new employees
- Make sure your employees understand what information you will share with IR
Our recommendation for ALL EMPLOYERS
Register for a free seminar or webinar where IR will share information about payday filing. The webinar is on OCTOBER 29, and the seminars are being held all over NZ.
DON’T DELAY AND BOOK TODAY!
For IR information and links to book into a seminar or webinar, go to: https://www.ird.govt.nz/campaigns/2018/campaign-payday-filing.html
DISCRETIONARY PAYMENTS
What ‘Discretionary Payments’ means
If an employer is bound under the employment agreement to make a payment, then it is not a discretionary payment.
There is lots of misunderstanding around paying bonuses and implications on an employee’s leave rate. The Act isn’t helpful in clarifying this, however if the payment is not in an employee’s employment agreement the payment is a discretionary payment and can be excluded from gross earnings. This may apply to the likes of a Christmas bonus, but check your employment agreement.
‘Discretionary payments’ are defined by MBIE on this page: https://www.employment.govt.nz/leave-and-holidays/calculating-payments-for-leave-and-holidays/gross-earnings/
