Institute of Certified NZ Bookkeepers

Payday filing: coming soon

There’s been a lot of discussion and speculation around payday filing - our social threads have been buzzing. As Head of Bookkeeping at Xero, I’ve had the pleasure of working closely with our product, marketing and compliance teams over the last six months, and I can honestly say I am very happy with the outcome.

While we already offer direct GST filing from blue Xero, we've put in a lot of work to design and implement payday filing, ensuring its seamless integration with Inland Revenue. A favourite feature of mine is the option to automatically adjust if there is a change to the pay run filed, but not paid; simply revert the pay run, make adjustments, repost it and we will take care of the rest.

Timeline

Xero’s seamless integration with Inland Revenue allows you to complete payday filing requirements by 1 April 2019. You will be able to establish your payday filing connection with Inland Revenue during March 2019 and continue with your pay runs as usual. On 1 April we will automatically switch your calendar pay runs over to electronic payday filing.

What can you do to prepare?

  1. Review and action our payday filing checklist.
  2. Attend our live webinar to learn more and see our integration in action. February is Xero Education Month and we’re offering a whole lot of live webinars including payday filing webinars. Take a look and register yourself for free.
  3. Check out our information page and video here.

What is payday filing?

Currently, employers file an EMS and an EDF either monthly or twice monthly, depending on the level of annual PAYE payable.

From 1 April 2019, legislation changes mean that it will become mandatory for all employers to file an Employment Information Schedule every time they pay staff. This information will need to be filed with Inland Revenue within two working days of the payments being made to employees. For employers paying weekly wages, this will mean filing returns 52 times per year, vs 12 times per year today.

Employers will also need to provide new and departing employees’ address information, as well as their date of birth (if they have provided it to you) as part of every pay run.

Additionally, for employers who have annual PAYE/ESCT of more than $50,000, this information will need to be filed electronically. This could be achieved through payday filing compatible software or through myIR.

When is the payday filing deadline?

Payday filing will be compulsory from 1 April 2019. From then on, employers are expected to submit a report to Inland Revenue after every pay run. Most businesses will be required to submit that report online (unless they pay less than $50,000 per year in salary or wages).

The due date for tax and KiwiSaver payments remains the same. That’s the 20th of the month – or 5th and 20th of the month for twice-monthly filers.

If you’re not already using Xero Payroll, now's the time to get started! It’s easy to use and quick to process and we have a special promotion for new payroll sign ups and those upgrading to Xero Payroll.

Limited time offers

Sign any new clients up to Xero with Xero Payroll and get 50% off for three months - just use the promo code PAYROLL50. For existing clients, add Xero Payroll for free for three months with the promo code PAYDAY50. Be quick, these offers expire 31 March 2019. If you have clients on Xero cashbook or ledger and would like payroll as well, please speak directly with your account manager.

Happy filing!

Melanie Morris
Head of Bookkeeping New Zealand
Xero

  • 7 February 2019
loading