Fact sheet – Payday Filing

From 1 April 2019 employers must be set up to begin payday filing. This means that, for every payday after 1 April 2019, you will:

  • File employment information every payday instead of filing an employer monthly schedule (“EMS” or IR348) on the 5th and/or 20th of each month
  • Provide new and departing employees’ address information, as well as their date of birth – if they have provided it to you
  • File electronically (from payday compatible software or through myIR) if your annual PAYE/ESCT is $50,000 or more

Payday filing will become a part of your normal payroll process.

The due date for actual payment of PAYE is still the 20th of the month (or 5th and 20th of the month for twice-monthly filers, who are generally large employers). However, you will no longer need to file an Employer deductions form (IR345).

What employment information will I be filing?

You’ll be filing the same information you used to provide with the EMS (your IR348) as well as:

  • ESCT (employer superannuation contribution tax) for each employee
  • pay period start and end dates
  • pay cycle, e.g. weekly, monthly, adhoc
  • payday date
  • additional information about new and departing employees.

How do I file the information?

Most employers will file online, either through their payroll software or through the myIR system.

If you choose to file with myIR, opt in through your myIR account. Once you’ve opted in, a Payroll returns account will show in your My business section. This is where you’ll file your employment information and employee details. You can file through your Payroll returns account by file upload (if you have compatible software) or by entering the data onscreen.

Some employers have the choice of filing on paper. Note that paper filing is only available from April 2019. If you opt in to payday filing earlier than April 2019 you must file electronically.

Once you’ve opted in to payday filing, the allowable time you have to file varies, depending on your circumstances.

If… How? How long after payday?
Your annual PAYE and ESCT deductions are $50,000 or more, you must file online two working days
You use a payroll intermediary, they must file online two working days
Your annual PAYE and ESCT deductions are less than $50,000, you must file on paper OR online, but you can choose to file… 10 working days after:
– payday, OR
– the 15th and end of month if you choose to send information twice a month
You pay contractors schedular payments, you must file online, but you can choose to file… two working days after:
– payday, OR
– the 15th and end of month, if you choose to send information twice a month
You have to pay your own PAYE as an IR56 taxpayer, you must file online, but you can choose to file… 10 working days after:
– payday OR
– the 15th and end of month
You do not live in New Zealand but you pay employees who work here (known as “Shadow payroll payments”) you must file online Either:
– two working days after the 20th day following payment OR
– two working days after the 15th or end of month depending on whether 20 days after the payday falls between the 1st and 15th of the month or the 16th and the end of month
You make out-of-cycle payments on paper OR online not later than the end date of the payment period
You have an employee share scheme, you must report the taxable value of an ESS benefit to your employee on paper OR online Two working days after the 15th or end of month depending on whether 20 days after the payday falls between the 1st and 15th of the month or the 16th and the end of month

Can’t I keep filing on paper?

It is possible to seek an exemption so that you can continue to file on paper if:

  • You have limited digital services available to you or they’re not very reliable in your area
  • You don’t use a computer or you’re not very confident using one
  • The costs you would incur complying with online filing would be unreasonable in the circumstances

Inland Revenue can set a time limit on an exemption like this or cancel it with six months’ notice.

What about the ir-File service?

The ir-File service is not available for payday filing. If someone else currently files your Employer monthly schedule (IR348) using ir-File, make sure you reset their access so they can file through the Payroll returns account. You can only do this if you’re the account owner.

What do I do about new employees?

Before any new employees’ first payday, you need to provide their employee details:

  • their start dates,
  • contact details and
  • date of birth (if they provide this to you)

Don’t forget to let your employees know that this information will now be provided to IRD.

Penalties and interest

If you file your employment information late, IRD will initially send you a warning letter(if you filed all your other returns for the past year on time). However, you file late again within a 12 month period, IRD will charge you a $250 late filing penalty.

If you’re a payday filer you probably have more than one due date each month to file employer returns. If you file late, you’ll only be charged one late filing penalty even if you miss more than one due date in a month. The penalty is due 30 days after the end of the month in which the return was due. IRD will also charge late payment penalties and interest on late filing penalties not paid by the due date.

Last reviewed: 9 January 2019