Payroll News - 2004
Issue 60 February 2004
- Have you changed from a small to a large employer?
- 2005 tax tables
- Employee gives you a new tax code
- Using the correct tax type when making online payments
- ir-File reminders
- Notice to deduct amounts owed to Inland Revenue
- 2003 Tax year payment reminder
In this issue we talk about changing your employer status from small to large, online payments, ir-File reminders and how to make extra deductions from your employees' wages.
Please pass this newsletter on to the person who deals with the payroll in your business.
Have you changed from a small to a large employer?
You become a large employer if your gross annual PAYE deductions (including SSCWT) go over $100,000 in the first year of employing, or if your gross annual PAYE deductions (including SSCWT) were $100,000 or more in the previous year ended 31 March.
Large employer responsibilities
- Pay PAYE to Inland Revenue twice a month:
- for wages paid between the 1st and 15th of the month, PAYE deductions are due by the 20th of the same month
- for wages paid between the 16th and the end of the month, PAYE deductions are due by the 5th of the following month, except for the second period of December, which is due on 15 January.
- File your EMS once a month using ir-File on the 5th of the following month, which is at the same time as the payment period from the 16th to the end of the month.
What happens?
If our records show that your PAYE deductions meet the criteria of a large employer, we will send you a letter telling you when you:
- need to start paying your deductions twice a month
- file your EMS, and
- start using ir-File.
2005 tax tables
Your PAYE deduction tables for the year ending 31 March 2005 will be posted to you in early March. The rates in these tables will apply from 1 April 2004.
Employee gives you a new tax code
If your employee gives you their tax code or changes their tax code, you can apply that code from the start of the pay period in which it is received.
Please note that if you have already completed your payroll for the pay period, apply the new tax code to the next.
Using the correct tax type when making online payments
If you use internet banking to pay your PAYE, be sure to select the correct tax type.
The customised "tax payment" service available with some banks means you can simply select the tax type you wish to pay from their dropdown boxes.
If you are paying PAYE you need to select DED.
DED relates to employer deductions and applies to:
- PAYE or any combination of PAYE
- child support (CSE)
- student loan (SLE), or
- specified superannuation contribution (SSC) deductions.
DED should be used for all PAYE-related payments.
Note
Although you can use online banking 24 hours a day, each bank has a different cut-off time for processing these payments. Payments made after these times will be carried over and processed the following business day. If you are making an online payment on the last day for payment, it is important that you check your bank's cut-off time to ensure your payment will not be late.
ir-File reminders
Here are a couple of reminders for those of you who send your employer monthly schedules to us using the ir-File system.
Passwords
Please remember to securely store your user ID and password somewhere other than your PC. Your password is stored in a folder on your PC so when you use the "save password" option your password will be lost if this folder is cleared.
New payroll person
If your payroll person leaves, their replacement will need to register for their own userID and password. Log on to ir-File and follow the registration process. Agents and payroll bureaus will be asked if they would like to set up a new workspace or gain access to an existing workspace. A new user ID and password will be sent out.
Auto-deletion process
Just a reminder that records which are more than six months old are now automatically deleted from your workspace and moved into your trash bin. We suggest you save any records you wish to keep to your computer. You'll find further information about how to save records and the auto-deletion process on the ir-File homepage.
Notice to deduct amounts owed to Inland Revenue
From time to time Inland Revenue may require you to deduct an amount (for overdue tax) from your employees' wages. This will usually be for employees who haven't made arrangements for payment of overdue amounts.
If we require you to deduct these extra amounts we will send you a notice advising you of this and telling you what to do. If you receive one of these notices you are legally obliged to make the extra deductions as shown.
These deductions are in addition to the usual PAYE and other deductions you make from the employee's pay, and are payable to us by the end of each calendar month.
Do not include these extra deductions on your Employer monthly schedule (IR348) or use the Employer deductions (IR 345) or (IR 346) forms to pay them. Instead, use one of the three payment options listed on the deduction notice.
The extra deductions must continue until:
- the total amount owing has been deducted and paid to Inland Revenue, or
- you receive a notice from Inland Revenue telling you to stop making the deductions, or
- the employee stops working for you - you will need to advise us of the employee's finish date straightaway.
If you require any further assistance about these extra deductions, please contact us on the telephone number at the top of the deduction notice.
2003 Tax year payment reminder
7 February 2004 is the due date for taxpayers who have an end-of-year income tax, family assistance overpayment or student loan payment due.
For anyone with a tax agent and extension of time arrangement, the due date will be 7 April 2004.
Note:
As 7 February falls on a Saturday all payments received or postmarked 9 February will be treated as received on time.
Download ›
PDF | 404kb | 2 pages
Download Acrobat Reader to view PDF files
Report an accessibility problem for this page
Date published: 23 Nov 2004
Back to top
