What is payday filing?
Payday filing (previously called payday reporting) will change the way an organisation is required to file its employment information (the pay details of a company’s employees). Currently every employer is required to file an Employee Monthly Schedule (IR348). Under payday filing employers must instead file an Employment Information schedule within two working days of each payday.
Why was it introduced?
IR’s systems and processes are undergoing a redevelopment as part of its ‘Making Tax Simpler’ initiative. A key purpose of this initiative is to take advantage of modern technology. Payday filing is a means to ensure IR have the most up to date employment information at hand to work out tax and other entitlements more accurately.
When does it commence?
Payday filing became available on a voluntary basis from 1st April 2018 and will become compulsory from 1st April 2019.
It is important to note the due date for tax payments remains the same at 20th of the month following for existing monthly filers and 5th and 20th of the month for large employers who currently file twice monthly.
Payday filing for iPayroll customers
iPayroll will be implementing voluntary payday filing for our PAYE Intermediary (PI) customers progressively from December 2018 to ensure all employers using this service are compliant by 1 April 2019 (the “go live” date).
iPayroll will continue to manage all PAYE tax filing matters directly with IR on our PI customers’ behalf. We will be communicating with PI customers and our iPayroll Partners as their transition to payday filing progresses.
For our non PI customers (i.e. customers who manage their own tax) by 1st April 2019 we will be providing tools to enable you to file the Employment Information schedule to IR every payday. However, if you wish to join the PI service prior to 1st April and have iPayroll manage this process on your behalf please contact our Helpdesk.
The current employment information filing process verses payday filing
PAYE Intermediary Customers
| Current Process | Payday filing process | |
| Filing and Timing |
iPayroll files an Employee Monthly Schedule (EMS) (IR348) on a monthly basis on behalf of the customer iPayroll files a Tax Remittance (IR345) monthly or twice monthly on behalf of the customer |
iPayroll files an Employment Information schedule within two working days of each payday on behalf of the customer iPayroll files a Tax Remittance (IR345) monthly or twice monthly on behalf of the customer |
| Information Submission Method | Information is submitted by iPayroll directly from iPayroll’s system | Information is submitted by iPayroll directly from iPayroll’s system |
| Employee Details Information | Employee details information is submitted by iPayroll via the EMS and KED files | Employee details information is submitted by iPayroll directly from iPayroll’s system |
Non PI Customers
| Current Process | Payday filing process | |
| Filing and Timing |
Employer files an Employee Monthly Schedule (EMS) (IR348) on a monthly basis Employer files a Tax Remittance (IR345) monthly or twice monthly |
Employer files an Employment Information schedule within two working days of each payday Tax Remittance (IR345) is no longer required to be filed |
| Information Submission Method | Information is submitted by the Employer by uploading the files online via myIR | Information is submitted by the Employer directly from iPayroll’s system |
| Employee Details Information | Employee details information is submitted by the Employer using the EMS and KED files uploaded via myIR | Employee details information is submitted by the Employer directly from iPayroll’s system |
Become an iPayroll customer
If you are not an iPayroll customer now is a great time to review your payroll processes and talk to us about joining our PI service. Let us manage the payday filing requirements for you.
Contact one of our payroll specialists today for more information.
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