Employers are responsible for making various deductions from the payments they make to their staff and paying these deductions to IRD.
You must register as an employer with IRD before you can file these returns. Refer to the IRD website for more information.
From 1 April 2019, all employers must file their PAYE returns on each pay day. This option is available in FlexiTime and can be enabled for your account. This article has more information about Payday Filing.
Filing and payment responsibilities for salary and wage deductions differ depending on whether you are a small or a large employer.
- If you are paying less than $500,000 per year PAYE, you are a small employer.
- You are a large employer if your gross annual PAYE deductions were $500,000 or more in the previous year ended 31 March.
- If you are a new employer, you become a large employer if your gross annual PAYE deductions go over $500,000 in the first year of employing.
Small employers must file an Employer Monthly Schedule (EMS) (IR348) and Employer Deduction Form (EDF) (IR345), and make payments to IRD once a month. You can find these files in FlexiTime under Payroll > Reports > IRD Reports.
Returns and payments are due to IRD on the 20th of the month following the tax period.
Small employers can file their monthly schedules either by using ir-File (see below), by manually entering details on Inland Revenue’s website or by completing and returning the forms sent out each month by Inland Revenue.
Large employers must file Employer Deduction Forms (IR345) and make payments to IRD twice a month.
What you need to do in the first half of the month
- Pay deductions from wages paid between the 1st and 15th of the month by the 20th of the same month.
- Complete and send in an employer deductions form (IR345).
What you need to do in the second half of the month
- Pay deductions from wages paid between the 16th and the end of the month by the 5th of the following month.
- Complete and send in the Employer monthly schedule (IR348) and the IR345.
Large employers must file their employer monthly schedules (EMS) electronically using ir-File once a month.
Filing monthly PAYE Returns
Employers can file their employer monthly schedule (IR348) electronically using IRD’s File an Employer Schedule (ir-File) service. You must register with IRD for an Online Services Account before you can use ir-File. Refer to the IRD website for more information.
On 31 January 2019, IRD advised:
Payroll returns account in myIR to replace ir-File from 28 February
From 28 February you’ll be able to use the ‘payroll returns’ account in the My business section of myIR to file employer monthly schedules (EMS) and employer deduction forms (EDF). This is to help you get familiar with the payroll returns account before you must begin payday filing from 1 April 2019.
This means the ir-File service in myIR, used to file EMS and EDF, will be discontinued on 11 March. The payroll returns account will show in your myIR account from 28 February. File upload and online entry options will still be available.
What does FlexiTime provide?
FlexiTime provides the ability to extract the information needed for filing returns and schedules and making payments to IRD.
Each file can be downloaded for sending to Inland Revenue or viewed onscreen, for checking and optionally manually entering on the IRD website or on the paper form.
Note – the IRD files are NOT automatically sent to IRD. To submit files to IRD you must upload these files using the IRD online services.
You can choose to download any of the three file extracts or to view details onscreen. If you download a file, you can then open that file using a text or spreadsheet program to view the contents.
If preferred, you can enter any of the three IRD schedules manually on the IRD’s website. Use the View Report option to show you the information to be entered.
Employer Monthly Schedule - IR348
The Employer Monthly Schedule (IR 348) lists your employees’ deduction details for a specified return period. The return period is always a single calendar month and is identified as the last day of the month.
The example below shows View Report for tax period 30/09/2017. This information can be used when entering IR 348 on the IRD website.
Employer Deductions - IR345
The Employer Deductions form (IR 345) is used to record and pay the deductions made from your employees' pay and claim tax credits for KiwiSaver and complying funds (includes ESCT, formerly known as SSCWT). Use this file to record and pay deductions from your employee's pay to IRD and then claim employer tax credits for KiwiSaver and complying funds.
The example below shows View Report for tax period 30/09/2017. This information can be used when entering an IR 345 on the IRD website.
KiwiSaver Employee Details - KS1
KiwiSaver Employee Details (KS 1) is used to enrol eligible employees in KiwiSaver and to notify Inland Revenue of other changes to employees’ KiwiSaver status.
This form is for employers to notify Inland Revenue about:
- A new employee being enrolled automatically in KiwiSaver
- An existing employee who opts in
The KS1 form should be completed and sent to Inland Revenue no later than when you are next required to send an employer monthly schedule.
See the IRD KiwiSaver website for more information.
On the Pay Reports, select KiwiSaver Employee Details (KS 1) and the required Tax Period.
Select View Report to show the return details onscreen, or Download File to create an extract file. The extract file will be called KS1_EXTRACT_<tax period>.txt.
The example below shows View Details for tax period 30/09/2017. This information can be used when entering a KS 1 on the IRD website.