IR: “It’s time to shift to payday filing”
All New Zealand employers should expect to receive a letter from Inland Revenue (IR) today regarding payday filing.
The communication is the first from IR on the mandatory payroll reporting changes. It confirms the 1 April 2019 payday filing start date and tells employers “It’s time to shift to payday filing”. For many businesses, this will be the first time they will have heard about this significant change to the way they must report payroll information.
Learnings from Australia
New Zealand business would do well to take note of the Australian experience of implementing a similar scheme called Single Touch Payroll (STP). The Australian Taxation Office wrote twice to employers – at 8.5 months prior to introduction and again 3.5 months prior. Around the time of the first letter only 10% of clients were ready for STP, and sixteen weeks before, not much had changed with 25% of clients being prepared. Many payroll solutions were not available until June (or later) leaving companies seeking deferrals from their obligations – an option not available to New Zealand business.
Upgrade your payroll software
The recommendation is to upgrade your payroll software early. Ask your payroll software provider when their payday filing solution will be ready. If they offer multiple payroll products, where does your solution sit on their priority roadmap? If they are rationalising their product offerings and pushing you onto a newer cloud product, make sure the functionality on the accounting side (payroll and accounting software are usually in the same suite) will not go backwards or be inferior to what you could get by having a broader review of your options.
Follow the checklist
Payday filing involves more than getting your payroll software upgraded. It impacts many parts of your business including IT, payroll and HR. The 1 April 2019 deadline is tight. You can start preparing your business by following the Payday Filing Checklist now.
Download the Payday Filing Checklist
Payday filing involves more than updating your payroll software. You can prepare your business by following this checklist now.
Turbo-charge your payroll solution
View a payday filing demo. Empower your employees with self service access to their payslips, timesheets, leave management and more.
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