The way you report PAYE information is changing
From 1 April 2019 all employers are required to report payday information to the Inland Revenue on the day you pay staff.
We have started the development of Payday filing in all MYOB payroll software at Mellow Business Group and it is going well. We have been Beta testing the feature and workflow in MYOB Essentials with a small group of customers and partners. We will be doing the same for MYOB Payroll, MYOB ACE Payroll and MYOB IMS Payroll shortly.
What are our next steps?
Once testing is complete, we’ll invite customers who expressed interest in early access. We expect to deploy the software release to all subscribers early in the New Year, well ahead of the April 1 compliance deadline.
More about Payday filing
We’ve collected some information for you via MYOB directly. Have a read below:
What is Payday filing?
Payday filing is a simpler way to report your payroll information directly from your payroll software.
All employers will be required to report to the IR on the day they pay staff. Businesses who make over $50,000 PAYE/ESCT deductions a year, will be required to file electronically and those that pay less than this can choose to file electronically or on paper. Payday filing is currently voluntary and becomes mandatory from 1 April 2019.
Employers will no longer be required to file an Employer Monthly Schedule on the 20th of the month.
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 time spent 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.
Want to know more? Give Gayle a call on 07-958-1949 or email email@example.com to get a detailed report on this subject.