PAYE filing is changing
From 1 April 2019, new Payday Filing requirements from Inland Revenue (IRD) become compulsory for all employers. In a nutshell, Payday Filing means that every time you pay employees, you are also required to file PAYE return information with the IRD.
The Core Changes from 1 April 2019
Must file payroll information within 2 working days of any payroll payment having been made
You will be required to request and provide details for new and departing employees, including:
Date of Birth and address (mandatory)
Email address and phone number (if provided)
If your PAYE is $50,000 or more per year, you are required to file your PAYE returns electronically, either via payday filing supported software or myIR
No longer need to file monthly Employer Deductions (IR345) and Employer Monthly Schedule (IR348) as payday filing replaces this information
Please note, the due date for payment of PAYE to the IRD has not changed - this is still the same 20th of the month deadline (or 5th and 20th of the month for large employers that are currently twice monthly filers).
Further IRD information is available by clicking here.
Filing February/March period PAYE returns
For any payroll payments made during February or March, Payday filing does not apply (unless your business has previously chosen to opt in early). Payroll Returns for these periods need to be filed using the standard IR345/IR348 via the ‘Employer Information’ section of myIR (Which has now replaced the IR-File system).
Xero Setup for Payday Filing
For existing Xero Payroll users, under Payday filing there are no major changes to how you currently process your payruns.
The main change is that in Xero it will be necessary for each team member who needs to post payruns to login to their myIR account to initially opt-in to Payday filing via Xero.
From 19 March the Xero payroll software will provide all payroll administrators with access to connect Xero to myIR to enable Payday filing, similar to the screens below:
What this effectively means, is that every person in your business who posts payruns via Xero will need a myIR login that is linked to the IRD number of the business.
More information regarding Payday filing via Xero and myIR can be found via the following links:
What if Thrive CA manage my PAYE filing?
Under the Payday filing system where you are using supported software such as Xero to post your payruns, PAYE return information will now be automatically sent to the IRD.
If Thrive CA manage filing of your PAYE return with the IRD, we will be adjusting our services to ensure greater oversight of the automatically filed information.
Because Thrive CA may no longer directly control your PAYE return information under Payday Filing, we will be taking a more active role in ensuring the filed information is correct and matches your payroll records.
Where we manage PAYE on your behalf:
You will still receive the usual reminder emails from us with details of the required PAYE payment due to the IRD on the 20th of the month
Thrive CA will crosscheck and reconcile your IRD PAYE account against your payroll software every period to ensure the information matches, and
We will advise you directly if any variances are identified
Summary of Key Dates
11 March - IR-File system used to file PAYE returns discontinued by the IRD. This has been replaced by ‘Payroll Returns’ in myIR which is where any outstanding Feb/Mar period PAYE returns must now be filed.
19 March - Xero payroll opt-in for payday filing becomes available for employers to setup payday filing connection through your myIR account.
1 April - Payday filing becomes mandatory and Xero payroll software functionality will automatically file required payroll information when any payrun is posted after you have completed the initial connection to your myIR account.
18 April to 26 April - IRD myIR portal services will be unavailable during this period. As a result its important to file any outstanding Feb/Mar period PAYE returns prior to 18 April.
What Do I need to do before 1 April?
For Xero payroll administrators, connect Xero payroll to your myIR account once the option becomes available in Xero on 18 March. Ensure that each team member who will need to post payruns has completed this step under their own Xero logins.
Users of other payroll software solutions should touch base with their solution provider to ensure they are aware of any specific actions they need to take to be Payday filing ready.
Review all employees in your payroll software to ensure you have accurate entries for:
Date of Birth
Email and contact phone number (if possible)
The links below provide additional summary information regarding the Payday Filing changes and related useful resources:
If you need further information regarding the Payday filing changes or any of the points mentioned above, please contact us for help.