Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Business Confidence due to take another hit

Business Confidence due to take another hit

With the ongoing surveys showing business confidence is low there is a hidden bombshell that most New Zealand business has yet to fully understand which could further undermine confidence. This slow-burning fuse is set to dramatically increase the administrative costs of small to medium businesses that make up the backbone of the economy and employ the majority of hard working kiwis.

Little published information has been pushed out about the new Payday filing legislation that comes into effect as of 1 April 2019. This new legislation looks to have major impacts on payroll for every business that employs staff.

As we fast approach the 1 April 2019 deadline for the impending payroll changes set by the Inland Revenue (IRD) it is becoming more important than ever that you check if your payroll software is going to be ready.

IRD recognises the impending urgency of time forever marching on and has sent an email to every employer in New Zealand about the impending compliance changes. In their email they have reiterated you need to check your software is compliant as the old way of doing things is not going to work post 1 April 2019.

Instead of filing your Employer monthly schedule (IR348) every month, you’ll need to file your employment information every payday in line with your normal payroll cycle. The New Zealand government recently passed a bill that means ALL employers now need to file employment information to the Inland Revenue (IRD) on a payday basis, instead of monthly. If employers make over $50,000 in PAYE/ESCT deductions a year, they will be required to file online. Payday filing is currently voluntary and becomes mandatory from April 2019.

“Our discussions with companies shows that many are unaware of the new compliance and whether their existing payroll software will work come April 2019.” says Chris Cameron, Tandem NZ

“We are one of the few software development houses in the country which have successfully fully integrated with the IRD new PayDay filing system allowing transfer of Payroll data back and forth.”

Have you checked your Payroll system? Are you going to be able to comply with the new legislation requirements? It is best you check now and avoid costly issues with the Inland Revenue and possibly your staff later.

What do businesses need to do now?
1. Review their payroll processes and whether they are in line with the new legislation.
2. Plan and schedule when to shift.
3. Ask their software provider if and when they’ll have payday filing compatible software.
4. Opt-in through their myIR account before the month they are due to start payday filing.


Businesses can check out the IRD website for more information on the changes and what it means for them. Payroll is at the heart of concern for many staff so it is critical that businesses are aware of the impacts of the new legislation and are ready to avoid any repeat of the payroll issues we have seen in the recent history within various sectors. It is the number one most critical software for any business. Payroll, Holidays and Employment is always a complex issue for business but it must be 100% accurate as it impacts people everyday lives.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>

ALSO:

Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>

ALSO:

Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>

ALSO: