Date: 9th January 2018
If your business is using a manual paper-based or spreadsheet-based system, or off-line software for your payroll, you may like to consider modernising before the beginning of the new financial year. From 1 April 2018, Inland Revenue is introducing significant changes to the way employer payroll returns (PAYE) are filed.
For employers not using payday software linked to Inland Revenue’s online portal, these changes will make payday administration more complicated and time consuming.
Time to throw out the paper system?
Let’s check out the two main changes in store.
The following changes may be voluntarily adopted from April 2018, and are mandatory from April 2019:
So it makes sense to use specialty payroll software that does this automatically, right?
Inland Revenue is also proposing changes to the payroll subsidy which may or may not happen. Currently, Payroll intermediaries, like Thankyou Payroll, receive a subsidy provided by Inland Revenue. These payroll intermediaries manage the Inland Revenue filing side of payroll for their clients, on top of giving them an easy to use payroll tool. In return for accurate data and on-time payments, Inland Revenue has been providing a subsidy.
But this subsidy may be removed, meaning companies like Thankyou Payrol who rely on this subsidy as their main source of revenue, may have to increase fees.
If you don’t use one already, we highly recommend an online payroll system that links to the Inland Revenue online portal. Once it’s set up (something that we can help with) you’ll find payroll and PAYE processing so much simpler and faster.
To find out which payroll system is best suited for your business’ needs, please contact us.