Much like Single Touch Payroll has done for Australia, New Zealand’s payday filing is designed to usher in a new digital age for the country’s payroll reporting. If you’re an Australian business with employees in New Zealand, here’s what you need to know about your obligations under payday filing.
Payday filing is an electronic payroll reporting system similar to Australia’s Single Touch Payroll (STP). If you’re already paying your Australian employees through STP, it should be an easy transition for your business.
With payday filing, Inland Revenue requires employers to send payroll information through their payroll software every payday, instead of once or twice per month as required under the Employer Monthly Schedule (IR348). For example, a weekly payroll requires employers to send information electronically four times per month.
The payroll information required is only a summary of each pay, rather than a year-to-date summary, and is far less than what’s required by STP. Employees can also view their pay information in MyIR, much in the same way Australian employees can do so in MyGov.
Does my business need to comply?
On 1 April 2018, payday reporting was introduced as an optional payroll reporting method for New Zealand employers (or Australian companies with employees in New Zealand) paying more than NZ$50,000 PAYE and Employer Superannuation Contribution Tax per year.
On 1 April 2019, payday reporting will become compulsory. To learn more about payday filing and your requirements, please visit the Inland Revenue website.