Inland Revenue is introducing payday filing from 1 May 2018. This will be optional until 1 April 2019 when it will become compulsory for all employers.
Payday filing automatically sends your PAYE return information to IRD on every pay day. You do not need to send any other PAYE returns to IRD.
Monthly filing requires you to file your IR 348 and IR 345 returns with IRD by the 20th of the following month.
Both methods require you to pay IRD the tax total for the period by the 20th of the following month. You can choose to pay your PAYE with each pay, or make a monthly lump sum payment. See Paying IRD below.
FlexiTime can handle the payday filing process for you without you needing to do anything extra as part of your payroll processing. Once signed up for payday filing, FlexiTime will automatically file returns on your behalf when you finalise a pay or reverse an employee from a pay.
FlexiTime also will keep the IRD up to date with the list of your employees.
Set up Payday Filing
To set up payday filing, all you need to do is authorise with IRD from your FlexiTime account. Log in to FlexiTime with the Admin username then go to Setup > Company Settings > Connect. Click on the Authorise button against Payday Filing:
This will take you to the myIR login page. Use the myIR login that is associated with this company:
The first time you authenticate with FlexiTime you will also need to give consent for FlexiTime to do PAYE filing on your behalf.
Note that once you have authorised your company for payday filing, IRD might not let you revert back to monthly filing. You will need to contact IRD to discuss this.
When signed up for payday filing, a new column is added to your list of pays that will show the IRD Status:
When you finalise a pay, the status will be set to Pending. Within a few hours the pay will be submitted to IRD and the status will change to Submitted.
Payday Filing requires that basic employee details are also sent to the IRD. These are sent through at the same time as pays are filed. This includes date of birth and address details. Consequently, where these have been entered into FlexiTime, it is more important that they are accurate than it has been in the past.
There may be rare occasions when you have invalid data that is rejected by the IRD, or where you've made an error that you want to correct.
Reversing employees from a pay will automatically adjust what was submitted to the IRD.
There may be some issues where you just want to resend the pay to IRD. An example is if you've put in the wrong IRD number for an employee. In this case you can just correct the IRD number, then, from the Options drop-down when you are viewing a finalise pay, choose Resend to IRD:
This will change the status of the pay back to Pending, and it will be sent through to the IRD a little later.
If the IRD could not accept the filing because of an error in the data, FlexiTime will send you an email with the details of the problem.
You can either pay IRD with every pay, or pay the tax total for the month by the 20th of the following month, just as you do with monthly filing.
To pay as you go, use the Banking Payments Batch to pay your employees and IRD.
Alternatively, the Banking Employee Batch will just pay employees. When you come to pay the tax for the previous month, go to Payroll > Reports > IRD Reports and view the IR 345 for the tax period to see the total amount owing.
Tip - under Setup > Company Settings > Pay tab you can choose to Download Bank Batch as soon as you finalise a pay.
The first pay you do after first connecting with IRD for payday filing will show up in the My Business section in myIR the following day, once it has been Posted in the IRD system. Also included will be a list of your employees.
Subsequent pays will appear immediately in myIR with a status of Submitted, then change to Posted over night. At this stage, the pay in FlexiTime will remain with a status of Submitted since there's currently no way for FlexiTime find out from the IRD when it moves to the next step.