What does your business need to do to prepare for Payday filing?
Do I need to change the way I report payday filing?
If your total PAYE/ESCT is more than $50,000 for the previous year ended 31 March 2018:
- You will be required to file online
- You will have 2 working days to file
If your total PAYE/ESCT is less than $50,000 for the previous year ended 31 March 2018:
- You can file online or paper
- Paper filers can’t shift to payday filing before April 2019 unless you change to online
- Paper filers have 10 working days to file
I am an MYOB partner and need to support my clients who are moving to payday filing:
As a Certified Consultant, MYOB Bookkeeper or MYOB Accounting partner you may have clients who will be impacted by the payday filing changes. MYOB partners are encouraged to familiarise yourself with payday filing, identify impacted clients, work with your clients on a transition plan to get them ready for payday filing. Contact your Partner Manager directly if you have any questions.
When must I start payday filing?
Payday filing will be mandatory from 1 April 2019. You can voluntarily opt-in from 1 April 2018.
What do I need to register for payday filing?
Employers should always start payday filing at the beginning of the month. The last EMS, prior to moving to payday filing, is due on its normal timetable. Moving to payday filing will mean that during the first month of payday filing:
- The last EMS and employer deduction form will be due on the 5th (for large employers) and the 20th (for small employers) of the following month.
- Employment income information will be due within 2 working days (for employers who file online) or 10 working days (for employers who do not file online or new employers) of the first payday in the month.
How do I shift to payday filing now?
If you want to voluntarily start payday filing, you can opt in through your myIR account. You can do this under ‘I want to’ in the ‘My business’ section of myIR. Once you've opted in, the ‘Payroll returns’ account will appear under your accounts and you can start payday filing at the beginning of the next month.
Note: You will need to use the onscreen data entry method while your payroll software is not compatible with payday filing.
If you intend to file directly from your software, you don’t need to opt in. Once payday filing functionality is released, you just send in your first employment information schedule and will be all set.
If I voluntarily opt in now, can I opt-out?
During the voluntary period only, there may be exceptional circumstances such as moving from a provider who has payday capability to one who doesn't. Employers should contact IR if this is the case. Once mandatory, employers cannot opt-out.
For more information, visit the Inland Revenue website.