Issue 68 October 2004 (Payroll News)

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Payroll News - 2004

Issue 68 October 2004

Making future-dated payments
PAYE running total from INFOexpress
Employee holidays and leave entitlements
PAYE due date falling on a weekend or public holiday
Why are gross earnings always shown as whole dollars on employer monthly schedules (EMS)?
New registration process to file an employer schedule electronically

Welcome to Payroll News

In this issue we tell you about making future-dated payments and how to find out your PAYE running total.

If you have an employer topic you'd like to see covered in this newsletter please write to the Editor, Payroll News, PO Box 2198 , Wellington or email us at payroll.news@ird.govt.nz

Please pass this newsletter on to the person who deals with the payroll in your business.

Making future-dated payments

In August's issue of Payroll News we talked to you about the different ways you could make your payments to us. This includes sending post-dated cheques when you're away around the time that PAYE payments are due. If you use this option please highlight the date so that attention is drawn to it. This minimises the risk of a post-dated cheque being processed early.

Alternatively, you could make your payments electronically, through the internet. Most banks have the facility to let you set your payment dates in the future.

PAYE running total from INFOexpress

INFOexpress is our automated telephone service. All you need is a touch tone phone and your IRD number. You can use this service to order Inland Revenue forms and booklets, get tax payment information and updates on your account balances. You can also order a statement for any of the accounts and check a total arrears balance.

You can check your PAYE and gross running totals for the current and the immediately preceding tax year. You can also access records of employer deductions for child support, student loans and specified superannuation contributions withholding tax (SSCWT) and your fringe benefit tax (FBT) balances.

We've enhanced the INFOexpress service with speech recognition technology. This enables callers to request options with their voice, rather than having to key in numbers on their touch tone phone. At present, this enhanced facility is only available for ordering Inland Revenue forms, booklets and taxpacks. Other services still require a touch tone phone.

INFOexpress is available between 6 am and 12 midnight, seven days a week. You can call these numbers for:

forms and stationery	0800 257 773
taxpacks	0800 257 772
all other services	0800 257 777

Employee holidays and leave entitlements

From time to time we receive queries from employers who want to find out about employees' holidays and leave entitlements. We'd like to remind you that we do not administer holiday pay and other leave entitlements. However, we can tell you how to calculate the tax once you know the amount of holiday pay or other forms of leave entitlement that's payable.

The Department of Labour's pamphlet Your holidays and other leave explains the rules for holiday pay. If you need assistance with employees' entitlements, please call their Employment Relations Infoline on 0800 800 863 or go to their website available from the related websites section of our site.

PAYE due date falling on a weekend or public holiday

If the due date for PAYE payment falls on a weekend or public/statutory holiday, you can pay on the next business day without incurring late payment penalties. Your Employer monthly schedule (IR348) (EMS) filing date will also move to the next business day.

Example

PAYE deduction month (small employer) - October 2004

IR345/IR346 and payment due date - 20 November 2004

IR348 due date - 20 November 2004

As 20 November 2004 falls on a Saturday, the due date for payment and filing will be on Monday, 22 November 2004.

Why are gross earnings always shown as whole dollars on employer monthly schedules (EMS)?

We have been asked why we preprint 00 cents in the gross earnings columns of the EMS. The reason for this is that tax is always applied to whole dollars. The formulas used in our tax tables and computer software packages are based on whole dollars. Where the exact amount of earnings is not shown in the tax tables you should use the nearest lower figure. When you transfer the total gross earnings for your employees to the EMS, you drop the cents. You must however, show your employees' actual gross earnings on your wage records.

New registration process to file an employer schedule electronically

You will see our registration process for online services when you register to file your employer monthly schedule electronically.

We have a range of secure internet-based services that make it easier and faster for you to exchange information with us.

Current online services available are:

File an employer schedule - enables employers, tax agents and payroll bureaus to send their employer monthly schedules to Inland Revenue online.
Look at account information - enables you to view account balances, transaction details and due dates for your Inland Revenue accounts online.
(Note - this is a restricted service currently being piloted to student loan borrowers, child support customers and tax agents only.)
Send and receive mail - allows you to send Inland Revenue personal or business information and receive our responses online.

You can apply for all the service(s) you wish to use when you register for an online services account so that you do not have to register separately. You can then use the same userID and password for all the online services.

We are progressively making improvements to the process of registering for an online services account and we will update you as these become available.