Xero payday filing is coming in March, make sure you are ready....
From 1st April 2019 employers must send employee and contractor payment information to Inland Revenue each pay day instead of each month.One of the reasons for this change is to supply Inland Revenue with more accurate and up to date information about employees and their pays, in a more timely manner. Using payroll software will also simplify the process of filing for employers. Payday reports will be filed by Xero as soon as a pay run is posted each pay period. There will be no need to file monthly employer schedules.
From the week starting 18th March 2019, you will be able to connect Xero payroll to your myIR portal and be ready for payday filing from 1st April 2019.
There are some important steps to be completed prior to payday filing commencing:
- Make sure your payroll settings are all correct and up to date
- Make sure all employee and contractor details have been entered into payroll - IRD number, date of birth, address, email. Inland Revenue require all these details to be correct for all employees. Contractors do not need to have a date of birth entered.
- Review Kiwisaver details - make sure employee Kiwisaver details are all up to date and correct.
How will payday filing work in Xero?
Each Xero user that processes pay runs will need to connect to the myIR portal using their login. You will only have to set this connection up once. On the 18th March there will be a banner in Xero with a link to get started with connecting to myIR. This banner will be accessed by going to the payroll menu and clicking on pay runs. Follow Xero's instructions to connect.
REMEMBER: Each user will need to connect their Xero login to the myIR portal.
You can then process your pay run as normal. Once your pay run is complete click post. You will see a pop up message from Xero advising the payday report will be automatically filed to Inland Revenue.
You will still pay PAYE on the 20th of the month following. To view the amount payable click on taxes & filings in the payroll menu. It's important to check the amount in taxes and filings matches what has been filed with Inland Revenue. We will continue to advise the monthly amount payable, and check what has been posted in Xero matches what has been filed in myIR.
When will payday filing start in Xero?
Once you have connected to the myIR portal, payday filing will start automatically for any pay runs that have payments made in April. It is important that you set up your myIR connection as soon as possible, to avoid missing a pay run from your first payday filing. March PAYE will still need to be filed through an employer monthly schedule, as per the current process.
Pay runs will need to be run on time, as filing needs to processed within two working days after the pay date. For those of you whom we process payroll for, please send employee hours on time, to enable us to process pay runs when due.
Check out Xero's blog post: Xero Payday Filing
We are here to help!
If you need a help with getting connected, would like a payroll audit done, or need payroll set up and/or training please let us know. We can also take care of processing your pay runs for you. Contact us today