Payday filing is a way businesses in New Zealand report their employees’ pay details to the tax office (Inland Revenue). You do it every time you pay your employees – whether that’s weekly, fortnightly, or monthly.
Why Do I Need to Do It?
It’s required by law in New Zealand. Payday filing helps keep tax records up-to-date and accurate. This way, the tax office always has the latest information about what your employees are earning and the taxes being deducted.
What Happens If I Don’t Do It?
If you don’t do payday filing or you do it late, the Inland Revenue might penalize you. This could mean fines for your business. Also, not keeping up with payday filing can lead to errors in tax records, which can create more headaches and extra work later to fix things.
A PAYE intermediary can help simplify the payday filing process for businesses. As payday filing requires employers to report employee earnings and tax details to the Inland Revenue every time they run payroll, it can quickly become a tedious task. A PAYE intermediary, with their expertise in payroll and tax regulations, can take on this responsibility, ensuring accuracy and compliance with legal requirements. Payroll software can be used to automate and streamline these submissions, significantly reducing the administrative burden. This not only helps in avoiding potential penalties for non-compliance or errors but also gives business owners peace of mind, knowing their payroll obligations are managed efficiently and accurately.