Issue 57 October 2003 (Payroll News)

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Payroll News - 2003

Issue 57 October 2003

missing or incorrect IRD numbers?
nil schedules
can't pay your tax due?
making tax easier for businesses
Inland Revenue's online services
ir-File
tax due date calculator
online correspondence
electronic payments
PAYE calculators

Missing or incorrect IRD numbers?

There are situations when employees have not given you their IRD number or the number they have provided is wrong.

What to do

If an employee does not put their IRD number on their Tax code declaration (IR330) form, or the number fails the check in your payroll software package (if you use one), you must deduct PAYE at the "no-declaration" rate and enter the tax code "ND" on your employer monthly schedule.

If an employee cannot remember their IRD number or they don't have one, all they need to do is call us on 0800 227 774. If they already have an IRD number we will be able to tell them what it is over the phone. If the employee has never had an IRD number we will post them an application form.

Nil schedules

Your employer monthly schedules should always be completed each month, even if you have temporarily stopped employing or if you have not paid any wages during the month. If you have no staff employed during the month you should still send us nil IR348's and IR345 or IR346 forms, until you cease employing permanently.

If you have stopped employing, please call us on 0800 377 772.

Can't pay your tax due?

We realise that there are times when some people may be unable to make their payments on time. If you don't think that you can pay the full amount by the due date, please contact us as soon as possible. By contacting us early there may be a reduction in the penalties and interest charged after the due date.

Late payment penalties and interest

If you don't pay your tax in full and on time we will charge you late payment penalties and interest. The penalties are:

1% of the amount owing, charged the day after it's due
4% of the amount owing (plus the I % penalty), charged seven days after it's due
1% of the amount owing (plus penalties already charged) each month the amount remains unpaid.

Interest is calculated daily on the unpaid amount including penalties. Penalties and interest are charged on amounts greater than $100.

Payment options

If you are unable to pay your tax on time or in full, we will discuss your current circumstances with you and help you work out the best options for dealing with the amount due. Some options for consideration are:

payment in full, or
some form of financial relief, including payment by instalment, if payment in full would result in hardship.

Note

By contacting us before the due date you will avoid being charged the 4% penalty. No monthly late payment penalties will be charged during the term of an installment arrangement if payments are made by the agreed instalment dates

Making tax easier for small businesses

The Government's recently released discussion document contains a proposal that should be of interest to employers. This involves a subsidy to encourage small businesses to use a tax agent for payroll management and associated tax responsibilities.

You can view details of this and other Government proposals on our website, or request a printed summary of the information by calling our automated phone service INFOexpress on 0800 257 477 (please have your IRD number handy when you ring).

We encourage you to provide feedback about the Government's tax proposals before 31 October-the final date for submissions.

Inland Revenue's Online services

The following page gives you a quick brief on some of the services now available to you on our website.

Remember, we regularly add new services to our site. You can register for updates about these by clicking on What's new on the homepage.

ir-File

Don't forget that you can file your monthly schedule electronically using ir-File. ir-File offers employers a secure, convenient method of filing employer monthly schedules. Any employer can use this service.

To use ir-File, you need:

a computer that can connect to the internet
an internet browser - Internet Explorer 5.01 or higher; or Netscape Communicator 6.2 or higher
an email address.

If you have these and you're interested in seeing how ir-File looks and works, you can try out our interactive demonstration. This lets you try out the system without sending any data to Inland Revenue. You can go to "File employer schedule" then on "Demo".

If you want to find out more about ir-File, phone us on 0800 473 829 or email us.

Tax due date calculator

Did you know that we have an online calculator you can use to produce a list of all the tax filing and payment dates that may apply to you? This is a handy reminder and will help you plan ahead for future due dates.

Your due dates will be calculated based on the information you enter. If you want to know the due date for only some tax types, or some tax types don't apply to you, leave them set at "No" or "Neither of the above" and they will be missed out.

For this service, simply access our website at www.ird.govt.nz under "Online services", click on "Calculators", then "Due date".

Online correspondence

We now have a secure internet-based service that lets you send us questions about your tax account and receive our responses securely and confidentially.

Conditions apply to your use of this service. You'll need to read the conditions of use before registering.

To register, simply answer the questions set out on the webpage by accessing "Register for password" under "Online services'". Have your IRD number handy to register yourself, or your employer's or tax agency's number if you're registering for work purposes.

If you already have an ir-File account, you don't need to register for Online correspondence, you can use your ir-File user ID and password.

Electronic payments

If you are an existing Westpac, ANZ, Kiwibank or National Bank customer you can pay through their online "tax payment" service.

Note

Payments must be made before the end of the online banking business hours if they are to be received that same day. Please contact your bank if you are unsure of your bank's online payment hours.

If your bank does not offer this service you can pay using their standard online service, but please make sure you supply the following details for us to credit your payment to your account.

Panel/field	Comments	Example
Particulars	Enter the IRD number of the person or organisation the payment is for.	98765431
Payee code	Enter three zeroes in the first three boxes, leave the next box blank, enter TAX and leave another box blank. Then enter the code for the correct tax type.	000 TAX PAY
Reference	Enter the period end date the payment is for, not the date you are making the payment. The period end date must show the day, month and all four digits of the year.	31102003

If the correct details are not provided, processing these payments will be delayed, which could result in:

payments updating to an incorrect account
incorrect statements and letters being issued, and
incorrect penalties or interest being charged.

For alternative payment options or more information about electronic payments, you can refer to our Making payments (IR 584) booklet or visit our website.

PAYE calculators

We have an online calculator that you can use to work out how much PAYE to deduct from your employees' earnings. It will work out how much PAYE to deduct from wages paid to an employee each week, fortnight, four weeks or month.

You can use the online calculator instead of the paper-based tax tables we send you. If you want to stop receiving the paper-based tax tables, please let us know.

To use this service, go to our website at www.ird.govt.nz and follow the links from "Online services" to "Calculators" to "PAYE tax deductions".