Pay Day Reporting – what does this mean to me??
What is Pay Day Reporting?
I’m sure you’ve heard the words pay day reporting or pay day filing being bantered around in conversations and the media recently – but what is it and how does it affect you?
From 1 April 19 all employers must:
- File employment information every payday (weekly payroll must file weekly, fortnightly must file fortnightly etc) but if you file a one-off pay then you also need to file information after that payday.
- Provide new and departing employees’ address information, as well as their date of birth – if they have provided it to you.
- File electronically if your annual PAYE/ESCT is $50,000 or more.
- The date for payment remains the same at the 20th of the month (or the 5th and 20th of the month for 2 monthly filers).
IRD have recently started contacting each and every employer in New Zealand to ensure everyone is compliant before the start date of 1 April 2019.
How do I deal with Pay Day Reporting?
The advice from IRD is that the easiest way to comply is by using compatible payroll software.
If you are currently using a manual payroll system or even some of the free payroll software around you will need to change. Here at 3rd Arm Admin we are firm believers in the adage “one size does not fit all” and as such we support a number of different payroll solutions which are all pay day reporting compliant.
There is some setup required in these payroll systems as you need to have the previous 52 weeks worth of information entered to ensure your staff are being paid correctly going forward. My advice – rubbish in = rubbish out so talk to an expert to ensure your information is both set up correctly and that you are using the best system for your type of business. Don’t leave this until the last minute!!!