New Zealand employers with payroll software will work best with the new payday filing system, which becomes mandatory in April 2019.
According to a recent report, all employers will be required to submit their employment information every time they pay their staff starting in April.
The Inland Revenue has been working closely with the payroll software providers to guarantee that they are well placed to meet the needs of their clients.
A few software providers are already up and running and many more are in the process of finalising their solutions, according to the Revenue’s Customer Segment Leader.
With more providers that are on board, the Revenue is hoping that employer will put payday filing on their New Year to-do list.
Customers are being encouraged to speak with their software providers for this is not something that is left to be done until the last minute.
It would be better if they start payday filing as soon as possible in order to avoid stress close to the deadline.
Using payroll software is the simplest way to complete the task so newcomers to the technology are urged to take some time to research all available options.
They could also look into the payday filing tool built by the Revenue into the myIR within the Payroll Returns Account, which may suit those employers who are not quite ready to make a switch to software.
The tool in the myIR portal will help them provide the information needed by the Revenue as easily as possible.
A little set up time is needed but after that, most of their employment information will be pre-populated so employers can avoid having to re-enter much of the same information every payday.
Inland Revenue has provided a network ‘gateway’ for software providers to feed employment information straight into its systems.
It guides them through testing and will help resolve any compatibility issues.
The gateway has allowed software providers to create a one-stop shop where in many cases the payday filing obligations can be completed seamlessly with just a few extra clicks.
Accounting and payroll software has the ability to revolutionise business interactions with the tax system and has the potential to further reduce compliance costs.
There will be some businesses wary of making another technology investment or think their business is too small to use software but there are a range of lower-cost options available in the market to suit companies of all sizes.
The owner of The Source Bulk Foods shared that his software does the job of compiling the data and sending it on to the Revenue at the end of each pay run.
Doing this puts the job out of the way and he does not worry again.
Previously, the owner had to manually pull all the information out of his software and file it on the 20th of every month.
