Big changes to Payroll – are you ready?

Big changes to Payroll – are you ready?

If you have not started planning for changes to payroll administration, now is the time to do so and also to consider an online Payroll system if you are currently manually processing.

This year has seen some critical tax and employment law changes take place.

IRD is to introduce “payday reporting” compulsorily from 1 April next year. You can start now and be ahead of the game.

Once implemented payroll information (Gross, PAYE, Kiwisaver, Student Loan etc) is required to be sent to IRD within two days for each and every payroll. So for a weekly payroll, for example, this information will be required to be sent to IR electronically four or five times a month.

In addition all payroll data must be filed digitally via the IRD portal using the new system START eServices (myIR) which IRD explains has more user tools and is expected to be more efficient.

If you are currently using a manual system for payroll, you should seriously think about an online payroll system that links to the IRD portal. Once it’s set up you’ll find payroll and PAYE processing so much simpler and feel more reassured about accurate record-keeping.

Contact us as we have the expertise to help you with the right payroll system for your business.

If you want to read about it and have a reference Wolters Kluwer has published a new, 2018 edition of Payroll – A Practical Guide to New Zealand Payroll Administration that has been revised and updated for recent developments that you will need to be on top of. These include:-

  • Payday filing, which marks a notable change in the way businesses will report PAYE information to Inland Revenue. This edition contains all the detail you need to know including special rules for out-of-cycle and schedular payments, shadow payrolls and early adoption.
  • Recent employment law changes on the extension of paid parental leave.
  • The introduction of leave and flexible work conditions for workers affected by domestic violence.