Simpler PAYE Administration
The Government has released information on proposals to make the administration of PAYE simpler - these are likely to be included in the 2017 tax bill.
Their proposals will help cut administration compliance costs for businesses and improve accuracy of deductions for employees.
Under the proposed changes there would no longer be a need to file a monthly employer schedule. Instead employers will use their payroll software to file the information directly to IRD each payday from 1st April 2018.
Employers who cannot access digital services can apply for an exemption to the ‘electronic filing system’ for filing their PAYE, should the employer be in a location where internet services are not available and or employers that do not use computers.
The dates for PAYE payments will not change to IRD, however; employers will be able to make these payments on payday if they choose too. This will help IRD identify problems quicker, i.e. incorrect tax codes, which in turn will reduce debts or employees missing out on entitlements.
The Government also want to cut the double up paperwork for new employees filling out paper forms to IRD. It is intended that software could be used to gather this information and be provided to IRD via their employer’s payroll system. For employers whom continue with the paper system, the IR330 & KS2 would be combined into one form.
Want to know more, please give us a call 03 578 3386 or email us support@tva.co.nz – we can help.
