MYOB is working with Inland Revenue to provide our customers a solution for Payday PAYE
What is Payday PAYE?
The NZ government have just passed a bill that will change the way PAYE is reported. The changes will mean employers are no longer required to file an Employer Monthly Schedule. Instead they would report information to the Inland Revenue on the day they pay staff.
Under the current timeframe employers will have until 1 April
2019 to adapt their processes to meet the new compliance
requirements. Software providers, like MYOB, will build the necessary
functionality in our software to enable the new reporting
Why are changes being made?
The aim is to reduce the compliance burden for businesses. The vision is for PAYE reporting to become part of the pay run process within payroll software, meaning the technology could automatically generate the report and file directly with Inland Revenue.
This will streamline the process by:
- Reducing the number of payroll processes (removing the Employer Monthly Schedule)
- Decreasing the number of deduction errors
- Lessening the chance of incurring fines for missing a file date
- Cutting the time you spend on payroll compliance
Obtaining PAYE information on a payday basis will enable Inland
Revenue to identify problems more quickly, such as when an employee is
using two M tax codes. This will improve the accuracy of deductions
and reduce the likelihood that employees will miss out on entitlements
or incur debt.
What do I need to do now?
Right now, there is no action for you to take. MYOB will continue working closely with the IRD and commence work to build the necessary functionality in our software and continue to keep you informed
You can read more about the Governments legislation changes here.
As we’re in close contact with Inland
Revenue, we'll keep you informed on any PAYE Payroll changes as soon
as they happen.