Start payday filing now
For our New Zealand members, if you need another reminder about payday filing, here it is.
Inland Revenue provided us with this update to ensure our members are up to speed and prepared for payday filing from 1 April 2019 and no, it’s not an April Fools joke.
Over the past few months, we’ve shared information to help employers around New Zealand get ready for payday filing.
All employers need to be payday filing from April 1, 2019, but if you believe you are ready to start payday filing now, February is a great time to opt in.
Doing so gives you time to get used to payday filing ahead of it becoming mandatory, and will stand you in a good position to iron out any issues before the busy period during April. If you opt in before March, it means that you’ll start payday filing electronically from March 1.
Starting early If you’re ready to start payday filing electronically via file upload or onscreen in myIR, here’s what you should do:
If you use payroll software, double check that it’s payday filing-compatible
Opt in to payday filing using the I want to menu in the My Business section of myIR
Review your myIR delegations and access roles – the ‘Owner’ may need to set up other users
Start payday filing in myIR from the start of the next month using the new Payroll returns account
Want more information? Our payday filing website has plenty of resources to help you, including downloadable guides, how-to videos, checklists, and links to on-demand webinars.
Payday filing means NZ Inland Revenue will be receiving more timely information to better calculate an individuals’ tax obligations and entitlements making tax more straightforward for all New Zealanders.
Register for free webinars Throughout last year and earlier this month, the NZ Inland Revenue Service held a series of webinars to help you get ready for the upcoming changes they are rolling out.
The department also says it is working on some proposed changes to make the tax system more straightforward. The changes are currently going through Parliament and are designed to simplify the end of year tax process for everyone.
If the law changes, these are some of the things you need to look out for:
Income Tax notifications If your only income is from salary or wages, or investment income, you will receive an end of year Income Tax Assessment between mid-May to mid-July. This will tell you how much you’ve earned and how much tax you’ve paid.
If you have additional sources of income, such as from business, rental property or from overseas, you will still need to provide Inland Revenue with more information and file an income tax return (IR3).
Automatic tax refunds If you’ve paid too much tax during the year, and your details are up to date in NZ Inland Revenue’s system, you will automatically have a refund paid into your bank account.
If you haven’t paid enough tax, you will be told know how much you owe and when you need to pay. It is recommended you contact Inland Revenue to check your contact and bank account details are up to date with us. This can be done using myIR.
Helping you stay on track As a result of payday filing, Inland Revenue will be receiving more regular information from employers, which will help prevent people paying too much or too little tax.
If it looks like you are on the wrong tax code, or are paying too little or too much tax, you will be notified.
Visit the Changing for You website to find out more about the proposed changes and what they could mean for you.