Changes are coming to the way that businesses deal with their employees' tax payments — and I think it's a positive move for identifying and reducing errors in our PAYE system. As long as IRD's system can cope also.
IRD is to introduce compulsory payday filing next year although you
can opt in now if you want to get a feel for how the system works in preparation for it being compulsory.
Businesses with a payroll of more than $50,000 will have to file a PAYE return electronically within two days after they pay staff, rather than the current once or twice a month. The idea is that this will happen directly from payroll software.
That means some businesses will be filing every week.
IRD says this will mean another step towards "seamless tax collection" and reduce the time and effort spent on compliance.
That's certain if you have the software. If you run a manual payroll I suggest you change to a supported online system that integrates with myIR to make life a lot easier. Do the work now to ensure your software is able to comply if payday filing applies to you.
