NZ businesses advised to prepare now for new requirements
August 30, 2018
NZ businesses advised to prepare now for new PAYE requirements.
31 August 2018 New Zealand businesses are being advised to start preparing now for new requirements detailed by IRD yesterday.
From April next year, businesses will be required to file PAYE returns with Inland Revenue every payday, as opposed to once a month.
Currently, Inland Revenue says around 400 businesses are already payday filing, but thousands more will need to join them in the next seven months.
Wellington payroll software provider FlexiTime has been working closely with IRD to pilot payday filing as the department implements changes to its systems, and believes nearly all 400 businesses which have already started payday filing are FlexiTime customers.
“The new approach is a positive change for businesses who want to save time and money, but our message to businesses is, ‘don’t leave making the switch to the last minute’,” FlexiTime Chief Marketing Officer, Jake Harvey, says.
“Based on our experience to date, it will take each payroll software provider some time to get payday filing up and running smoothly.
“Be sure to check your provider will be offering payday filing and get clarity as to when that will be. Many older or desktop-based systems won’t be compatible.
“We’re excited to already be up and running with our zero-touch, fully-automated payday filing solution that eliminates what was previously a manual monthly task for businesses.”
Inland Revenue has made it clear that the easiest way for businesses to comply with the new requirements is to use payroll software so Harvey advises those not using any to reconsider their processes.
“PAYE compliance can be a time-consuming burden on small businesses. But that burden is unnecessary if you let people like us do the heavy lifting for you.”
FlexiTime has been working with Inland Revenue over many months as the department upgrades its legacy systems so it can accommodate the PAYE filing changes.
“This is a great example of IRD working closely with the business sector to implement mutually-beneficial changes. It’s a really positive development,” Harvey says.
The outcome is a system which will be a vast improvement on how businesses interact with government — making it easier than ever to file payroll paperwork.
As a result, FlexiTime says it agrees with the government’s decision to remove the payroll subsidy paid to intermediaries to help small businesses cover the cost of outsourcing payroll compliance.
“With the new automated processes, we believe this subsidy is no longer needed and that’s a win for all taxpayers,” Harvey says.