From 1 April we are requiring all employers to use the new payday filing format, version 2.
Version 2 has been available since April 2020 and provides more Employment Information and Employee Detail information than the current version 1.
It is important to note that amendments to Employment Information have to be made using the same version as the original file. If you had previously filed through version 1 you must amend through version 1.
Filing through software
If you file through software you should notice little change. You will need to contact your payroll software provider for more information about what has changed.
Filing with in-house systems
Employers who have their own in-house systems will need to have built version 2 into their system. If you still need help finalising this, more information is available.
If you have any questions, please contact us
Filing in myIR
If you file on-screen through myIR or paper there is no change as the version 2 changes have been in place since April 2020.
Filing through intermediaries
If you use a Payroll Bureau or Intermediary service your payroll service provider will have made any necessary changes.
Changes to Employment Information (EI) return
Version 2 includes some new optional fields:
- Hours Paid.
- Prior Period Adjustments – there are new fields you can use for errors in past returns which affect the gross income and PAYE deductions you originally filed. These fields let you make the adjustments in the current return rather than going back and amending the earlier return. There are some rules around when you can use these fields and when you must go back and amend your earlier return. If you are allowed to use these fields, you can still choose to amend your previous returns if you want to.
- There are new fields on each row for special deductions such as voluntary and compulsory extra student loans deductions and employee share scheme benefits. This means you won’t need to add extra lines into your EI for these deductions.
- The payday frequency field is already mandatory for customers filing on-screen in myIR, through file upload or on paper. In Version 2 this is also required for people who file in gateway services.
Changes to the employee details process
- The employee details form and KiwiSaver forms are combined, so there are fewer forms and less duplication of information.
- There are changes to KiwiSaver Status Codes – they are fewer and improved.
- You will no longer need to update IR on KiwiSaver Savings Suspension start and finish.
- The KiwiSaver exempt income indicator only needs to be applied on the ‘Create’ function – if this changes you can update it by calling us, otherwise we will contact you.
- It will be easier to see, keep track of and update employee deductions.
Gateway Services only
In Gateway Services there is a change between EI version 1 and EI version 2.
- In version 1, a return can be filed and then immediately amended after receiving a successful response.
- In version 2, a return must be processed in order to be amended. Returns should process within 5 minutes, if they conflict with our batch processes this may take longer.
Any voluntary KiwiSaver contributions included on the EI will get penalties and interest if unpaid.