Inland Revenue introduced payday filing from 1 May 2018. From 1 April 2019 payday filing became 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.
You're still require 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.
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.
If you reverse a pay, an updated payday return will be sent to IRD to amend the filing information for this pay date.
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.
Resending Payday Returns
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.
Note that if you pay manually (not using a bank batch file) then the payments to the IRD need the tax period included in the Bank Code (for example DED 31052018 for any payments in May 2018), so this will change from month to month. You must also include your employer IRD number in the Bank Particulars, so IRD can identify who the payment is from. See the Pay Summary Report for more information. Most online banking systems have a "Tax Payment" or "IRD payment" option which will prompt you to enter this information.
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.
FlexiTime Payday Filing Reports
There are two places in FlexiTime where you are able to see what has been filed on your behalf.
1. The last section in the Pay Summary report shows exactly what has been filed for that particular pay.
2. The pre-set IRD Payday Filing report in the Report Centre found in the Pay Reports folder. In the Report Centre, you are able to customise the report eg. by removing the columns specific to an employee (such as employee name) or pay (such as pay date) from the report resulting in only the totals for each tax period shown. It is recommended that you add the filter - Is Latest as true so that if you reverse a pay you'll only see the amended return, and not the original return as well.