Kiwis in New Zealand need to pay their taxes based on the individual income they earn. Once you register as an employer, it is your responsibility to file wages and PAYE tax deductions on time. PAYE (i.e. Pay As You Earn) is not only one single deduction from wages, there are many other deductions that the payer should be careful with.
Elements in PAYE
The employer is required to file PAYE employment information on the following:
- PAYE (Pay As You Earn)
- ACC Earner’s Levy
- Student Loan
- Child Support Deductions
- Employer Superannuation Cash Contribution
- ESCT (Employer’s Superannuation Contribution Tax)
All of these elements need to be considered when making deductions from employee wages, and it is the employer’s obligation to calculate these deductions. Furthermore, from 1 April 2019, it became a requirement that all employers file payroll information every payday. Before this requirement came into effect, payday filing was optional for New Zealand businesses and the employer only needed to File IR345 and IR348 which summarized the payroll information once a month.
Compared to only filing PAYE once a month, employers now need to expend more effort and time filing payroll information fort their company after paying employees. This can be especially time-consuming when calculating and filing tax information for employees who are paid by the hour because they don’t have the same expected wage within each pay period. Employers should also be aware that their PAYE return must be filed within two working days after the employee’s payday. Because this can be quite a tight timeframe for employers to work within, they often need to plan in order to have more time available to spend on their PAYE filing.
Let us handle your PAYE filing
For expertise and professional help from a PAYE accountant, contact Premium Accounting Solution today and never worry about another pay penalty again! Whether you’re self-employed, a contractor, or a small business owner, we can help you complete all your PAYE deductions and salary calculations efficiently and accurately. Some business owners may choose accounting software to record PAYE Information, but as professionals in the field of New Zealand tax compliance, we can ensure that your PAYE filing complies with PAYE tax return requirements.
Book an appointment with us today and let our professionals help your business with payday filing. We’ll take the hassle out of your PAYE so you can spend more time focusing on your business strategy and planning. Get in touch now!
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