Issue 55 August 2003 (Payroll News)

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Payroll News - 2003

Issue 55 August 2003

employee details on the employer monthly schedule
employers' responsibility with special tax code or deduction rate certificates
filing your employer monthly schedule late
you haven't received your monthly schedule?
you can receive Payroll News electronically

Employee details on the employer monthly schedule

We'd like to remind you that on your employer monthly schedule you need to enter the total earnings and deductions for each employee for the month, not for each pay. For example, if you pay your employees weekly, you enter the totals for the month on one line, rather than on a separate line for each pay. The only time an employee needs to appear on more than one line within one month's schedule is when that employee operates two tax codes for the one employer and one is a PAYE tax code and the other is a withholding tax (WT) code.

Employers' responsibility with special tax code or deduction rate certificate

We'd also like to remind you what you need to do when employees present you with a Special tax code or deduction rate certificate (IR 23).

Employees who have been granted an IR 23 certificate by Inland Revenue will need to give you this certificate. If you do not see an IR 23 certificate, you must deduct the normal rate of tax and other deductions.

If an employee gives you a certificate, you'll need to make sure that it is valid by checking that:

it is for the right tax year
the person named on the certificate is the person working for you
it is properly authorised by Inland Revenue
it shows the rate for making deductions the employee has signed it.

Note

The employee is still required to complete a Tax code declaration (IR 330) and enter it in the tax code circle on the form.

The certificate will be addressed to either one employer or "To whom it may concern" if the person is working for more than one employer.

It also shows the period for which the certificate is valid.

When that period ends, the employee must either get a new certificate or complete a Tax code declaration (IR330).

The tax codes on the employer monthly schedule should be as follows:

If the IR23 shows a special rate for PAYE deductions show "STC" in the tax code box on your schedule.
If the IR23 shows a special deduction rate for student loans use the tax code shown on the IR23 on your schedule.
If the IR23 shows a special rate for PAYE deductions and student loans show "STC" in the tax code box on your schedule.
If the IR23 shows a special rate for withholding tax deductions show "WT" on your schedule.

Filing your employer monthly schedule late

If you do not file your Employer monthly schedule (IR348) by the due date, you may have to pay a late filing penalty.

A late filing penalty of $250 is charged for each employer monthly schedule we receive late. We will send you a statement advising you of the late filing penalty and the due date for paying it. The late filing penalty is payable one month after the due date of the schedule.

Example

The September 2003 schedule for an employer who pays deductions once a month is due on 20 October 2003. If the schedule is filed late, the $250 late filing penalty is due by 20 November 2003.

However, we do understand the challenges that you may face as an employer and that the unexpected does happen from time to time. With this in mind, if you do file your schedule late we won't automatically charge the late filing penalty if:

this is the first time you've filed late, or
you have filed all your returns on time in the previous 1 2 months.

We will send you a letter reminding you to file your schedule. If you file a schedule late during the next 12 months, we will charge a late filing penalty.

Your haven't received your monthly schedule?

Some employers have asked us how to get an Employer monthly schedule (IR348) if, for some reason the original schedule does not arrive in time.

Generally, we will get these forms to you around the 4th of the month in which the payment and forms are due. If the forms have not reached you fay this date you should either get one from our website or call our automated phone service, INFOexpress on 0800 257 773. This will allow you plenty of time to file the form by the due date.