Payday filing will be mandatory from 1 April 2019. This means employers will be required to file employment information every payday instead of monthly. If you file electronically (through a software provider or MYIR), you must file employment information within two working days of payday. To keep on top of the filing requirements we recommend you file the IRD returns at the same time you process the pay.
We anticipate this will create an extra workload and risk non filing of returns on time. As such now is a good time to consider moving to a payroll system that handles all the IRD filing requirements. A modern cloud based payroll will pay your staff, collect and hold PAYE and Kiwisaver in their trust account, then file and pay the Employer Schedules with IRD. Once set up you need only process the regular pays, the payroll system does the rest. If your system doesn’t do these things, do yourself a favour and look for a new one.
We recommend SmartPayroll. We have used SmartPayroll for over a decade and because it’s cloud based we can do our payroll from anywhere. They have a free helpdesk and the staff are very knowledgeable about employment issues, not just payroll. There are a number of plans available and a fee calculator at www.smartpayroll.co.nz/pricing. If you bank with ANZ you may be eligible for six months free. Click here.
For smaller payroll’s we recommend Thank You Payroll which is FREE for two day processing for 1-3 staff. There is a small charge for one day and overnight processing. How can they do it for free? They are taking advantage of the IRD subsidy to payroll intermediaries which is aimed at making it easier for small businesses to manage and pay their payroll. No setup fees, no updates or upgrades required, and manages employee leave and good support available. For more details go to www.thankyoupayroll.co.nz/pricing.