Payroll News Issue 76 July 2005 (Payroll News)

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Payroll News - 2005

Payroll News Issue 76 July 2005

Child support deduction notices
Paid parental leave
Making payments at Westpac Bank
KiwiSaver
Income tax returns due 7 July
A new look ir-File system

Welcome to Payroll News

In this issue we tell you about child support deduction notices and explain the new look ir-File system.

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

Child support deduction notices

If you have been asked to deduct child support for employees you may receive new child support deduction notices from us in late July or early August. We send out new notices for every

employee who has had a change in the amount of child support they are required to pay. This happens because a paying parent's child support liability may be reassessed as part of the salary and wages income finalisation (SWIF) process.

Every year, in February or March, we send child support assessments to paying parents. These assessments are based on income earned between 1 April and 31 January (10 months) and estimated income for the following two months (February and March). In July, we compare the estimated income with actual income received. Where income has changed by more than $500 the paying parent receives a new assessment.

The deduction notices you receive will tell you when to make deductions for employees and the amounts to deduct. If you have any questions about this process or child support, please call us on 0800 220 222.

Paid parental leave

The Paid parental leave application (IR880) and Paid parental leave transfer (IR881) forms have been updated with the increased paid parental leave maximum entitlement rate, effective from 1 July 2005. If you hold paid parental leave forms, please:

dispose of any unused forms dated November 2004 or earlier
request new copies of the forms by calling INFOexpress on 0800 257 773, or
download the new version of the forms from our website www.ird.govt.nz

Making payments at Westpac Bank

We've received feedback that some of you have had difficulties getting tellers at Westpac to accept associated returns - the Employer monthly schedule (IR 348) - when you are making payments using Employer deduction (IR 345) or (IR 346) forms. This is because some tellers are not aware of the contents and significance of different forms (IR345 and IR348) that make up the employer monthly return.

We have raised this issue with Westpac and asked them to make sure their staff are aware that the agreement between us is that they will accept all documentation associated with any payment.

Note
Westpac will not accept any documentation where there are no payments involved, including nil returns. You need to send these directly to us.

KiwiSaver

KiwiSaver is a voluntary work-based savings scheme due to start in April 2007, to help New Zealanders save. Inland Revenue will administer the scheme using the existing PAYE tax system.

The initiative was announced in the 2005 Budget as part of the Securing Your Future package. The Government expects to introduce legislation towards the end of 2005, so that the scheme can be passed into law in 2006.

More information about KiwiSaver is available on our website www.ird.govt.nz/kiwisaver

Income tax returns due 7 July

If your employees received income other than salary and wages and/or a summary of earnings, they may need to file an Individual tax return (IR 3) by 7 July 2005. If they are unsure about whether to file an IR3 they can click on the web link www.ird.govt.nz/income-tax-individual/itaxsalaryandwage-taxpacks.html or find out about an extension of time by calling us on 0800 377 774.

They can also file their IR3 online at www.ird.govt.nz by clicking on "Get it done online"

A new look ir-File system

Last year, we changed the ir-File registration to our Online services account registration process. We've done this so that in the future we can offer you other services that may apply to you when you register to use ir-File. Once you have an Online services account with us, you are able to use the same userID and password (single login) to use any of the services you applied for. Our Online services requiring login are:

File an Employer Schedule (ir-File) - enables employers, tax agents and payroll bureaus to send their employer monthly schedules to us online.
Send and Receive Mail - allows you to send us secure personal or business information and receive our secure responses online.
Look at Account Information - enables you to view account balances, transaction details, earnings information and due dates for your Inland Revenue accounts online. Currently, this service is only available to individual customers and tax agents.

What has changed on ir-File?

We have enhanced the ir-File look and feel to match our website www.ird.govt.nz

We have done this to make it easier for you to use ir-File. You can now move backwards and forwards through our website without losing your place. We've also introduced new features to improve our service to you and we illustrate these on the next page.

Note
Although ir-File has a new look and we've added some enhancements, we have not made any changes to the way you file your electronic employer monthly schedule.

Online services single login

We have introduced a new single login process that allows you to use any services you applied for from our website, including ir-File through a single login. When you login to use the ir-File service, you will be presented with a new Online services login page. Although the screen will look different, there is no change to the login process as shown below.

Once you have logged into Online services, click on File an Employer Schedule (ir-File) to start using ir-File.

Click on image below to get full sized view

Screenshot of the new ir-File entrance page

ir-File menu and applications

We have also made some enhancements to ir-File as suggested by a number of you. Here is the new look menu:

Click on image below to get full sized view

Screenshot of ir-File page explaining the menu options

*This used to be the "User details" function. As ir-File is now part of Online services, you may change your user details through the Online services login page.

We have added a sort function on the top menu bar of your ir-File workspace. This lets you organise and sort the details in your workspace according to your individual requirements. For example, you may want to sort your employer monthly schedules by return period. All you need to do is click on the down arrow next to "Return period".

You will be able to experience the new look and enhanced ir-File system in the near future. This new look will also be applied to the remaining webpages of Online services.

If you have any questions regarding the new look ir-File please phone us on 0800 473 829.