Do you know your NZ payday filing facts and figures?
New Zealand employers have either already opted into payday filing or will need to by 1 April 2019. Whether you’re in NZ or not, it’s time for some payday filing trivia.
Payday filing. It’s the change New Zealand’s payroll industry has been planning for, adjusting to - and potentially opting in to - for quite some time now. With so much time to prepare, we’re sure everyone in payroll knows all of the facts and figures.
Or do you?
Whether your business has operations in New Zealand or not, it’s worth testing yourself on what you know about the change. Here’s some payday filing trivia.
1 April 2019
Let’s start with an easy one. This is the date that everyone in New Zealand’s payroll industry has been preparing for. On 1 April 2019 payday filing will finally become compulsory for all employers. Yes that’s right, your time is almost up!
The annual Pay As You Earn (PAYE) and Employer Superannuation Contribution Tax (ESCT) deductions of employers will add up to the same, more or less than this figure. If it’s the same or more, payday filing will need to be done electronically.
The thing employers can choose to file on after 1 April 2019 if their PAYE and ESCT is less than $50,000. You can also choose to file electronically. We vote for technology!
Now for the IR forms. The IR348 - or Employer Monthly Schedule - becomes a thing of the past on 1 April 2019. With payday filing now happening each payday, there’s no longer a need for pay information to be reported monthly using the IR348.
That other IR form - the Employer Deductions Form - will also be made obsolete by the new payroll process, which will collect all necessary information in just one file.
The number of working days you have to file electronically after a payday event.
The number of working days you will have if you file on that other stuff (paper).
The people that work for you, obviously. However, if there’s any new ones, or departures, employers now need to report key details (including start and end date, contact details and date of birth, if provided). These need to be filed before a new employee’s first payday. The good news? It does not apply to existing employees.
The estimated extra annual cost for businesses who don’t use payroll software under the new regime. An accounting firm has estimated it could add at least 45-60 minutes in extra admin per month for a business with a weekly pay cycle.
Most will recognise this date as important. It’s Christmas Day. But NZ’s payroll industry will also equate it with time off from payday filing: the days between Christmas and 16 January are not technically classed as working days. That means all payday filing for that period will be due on 17 January. Time to book that holiday.
The new payday filing regime will allow the introduction of automated tax assessments in New Zealand. This is the number of New Zealanders who will get a tax refund paid straight into their bank account for the first time.
1 July 2019
Similar to New Zealand, but not the same! Australia’s Single Touch Payroll regime becomes compulsory for employers with under 20 employees on 1 July 2019. For those businesses operating in both markets, it’s best not to get confused!
HR3 and payday filing
How did you go? Whether or not you knew these facts and figures, HR3 has you covered. Our payday filing release (V22.214.171.124) was made available to our customers on Monday 25 March 2019. If you pay one or more New Zealand companies using HR3 payroll, make sure you download and install this release before 1 April 2019!
Want to know more about New Zealand payday filing?
New Zealand’s IRD has a number of resources available for payday filing. The IRD offers a comprehensive overview of your payday filing obligations, as well as a series of videos to help you understand and adapt to the change. The IRD has also compiled a guide on how you can file using the myIRD’s upload service.
You can also call our support desk on +61 3 8563 9200 or firstname.lastname@example.org
The thoughts of the HR3 team are with all of those in New Zealand who may have been affected by the recent tragic events in Christchurch.