Introduction to payday filing for Manage Own Tax clients

Introduction to payday filing for Manage Own Tax clients

Note: This article is for clients who manage their own tax.

You don't need to worry about payday filing if iPayroll is your PAYE Intermediary, as iPayroll will manage your payday filing for you.

Background

Under payday filing employers file an Employment Information (EI) schedule for each payroll they process within two working days of the payday.

All iPayroll's Manage Own Tax clients were opted-in to payday filing from 1st March 2019.

As payday filing is now enabled, you no longer need to download tax files from iPayroll and upload these files via myIR for tax periods from the 1st March 2019.

Payday Files

There are two types of files that are created with payday filing that need to be sent within two working days of the payday.

Employment Information (EI) schedule

The EI schedule is the payday file that contains all the pay and tax information for each employee paid in that payroll.

This payday file is created from every payroll and is one payday file per payroll.

The EI schedule will be submitted directly to Inland Revenue (IR) by iPayroll when we Close your payroll. Therefore, meeting the two working day deadline.

IMPORTANT: iPayroll will use "best endeavours" to send the payday file on your behalf. However, on occassion, it may not be received successfully by IR.

iPayroll accepts no responsibility for any failure of the payday files to send.

It is your responsibility to check the Tax > Payday Filing History report to verify the file has been received successfully by IR.

If the file has not been received successfully by IR, you will need to transmit the file again yourself from the Tax > Payday Filing History report.

Note: Because iPayroll has submitted your payday files for you via IR's Gateway Service, you are not required to review or submit any employment information in myIR.

Employee Details File

If an employee has newly started, changed their details (for example, their KiwiSaver status or tax code), or finished with an organisation during a pay period, a payday file containing the employee's details is created and sent with the payday file of the EI Schedule on Close of payroll.

This payday file is only created if there is employee information to report. It is also one payday file per employee.

There are three types of Employee Details files:

  • Create - generated for a new employee
  • Update - generated if details for an employee that are reportable to the IR have changed
  • Terminate - generated if an employee has finished
    Note: Terminate files are only generated from iPayroll if a person is finished from the Final Pay sub-menu for the person, or if a person is finished in the payroll process, but is not paid out any final pay.
    If a person is finished in the payroll process and is paid in that payroll, their termination is reported in the EI schedule.

Redundant Files

You are not required to file the following files for payday filing periods.

IR348 Monthly Schedule

The EI schedule replaces the IR348 Monthly Schedule.

IR345 Tax Remittance

As IR's system will already know how to split the tax payments you make across the various tax types (PAY, KSR, KSE etc), you no longer need to file the IR345 Tax Remittance.

Therefore, all you need to do is check the total tax due per the IR345 on our system, and make the tax payment on the relevant due date via internet banking, using the Employer Deductions - DED tax type and the relevant Tax Period End Date.

KiwiSaver Employment Details (KED) Form

The KiwiSaver Employment Details (KED) form also no longer needs to be filed.

An Employee Details file is automatically sent on Close of payroll if an employee's KiwiSaver status needs to be reported to the IR.

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