The business IRD settings are required to enable Payday filing - Employee Details, Employment Information, Employment Information Amendment, IR345 Employer Deduction reporting and if you are intending to include IRD payments in your payment files.
To add your IRD Settings, you can click on the following options (as shown below):
- From the main left hand 'Business' menu, then click on 'Payroll Settings', then to 'IRD Settings';
- From your main business dashboard, click on the 'Payroll Settings', then to 'IRD Settings'; or
- From your Action Items, click on 'IRD Settings' text.
All of the above options will then take you directly to the IRD Settings page.
There are 2 options to choose when selecting who will be lodging the reports to the IRD:
- the Employer: Select this option if the employer is submitting PAYE and reporting responsibilities to the IRD and not using a third party.
- the Intermediary: Select this option if you are an outsourced company completing payroll on behalf of the employers. You will then be asked to enter the intermediary's unique 8 or 9 digit IRD number. (No spaces or dashes. Example IRD number format: 123456789) Important note: the employer will need to complete an IR920 Employer Linking to Payroll Intermediary form to provide authority for the intermediary to act on their behalf and submit PAYE and reporting responsibilities to the IRD.
Copy Business Details
A handy feature in this screen is the ability to 'Copy from Business Settings'. If you click this button, it will populate the business fields from the information previously entered on the business details screen. This function can be used regardless of what IRD setting is chosen:
Then, complete the following fields:
IRD Number: this is the employer's unique 8 or 9 digit business IRD Number. (No spaces or dashes. Example IRD number format: 123456789)
Contact First Name: enter the contact person's first name.
Contact Last Name: enter the contact person's last name.
Contact Phone: enter in the contact person's phone number.
The phone number must contain 9 digits, including the area code. For international numbers, there is a maximum of 12 digits allowed, no special characters. The area codes for New Zealand are:
- 03: South Island and the Chatham Islands, including Christchurch, Dunedin, Invercargill, Nelson, Timaru, and Westport.
- 04: Wellington region.
- 06: Southern and eastern North Island, including Manawatu-Wanganui, Hawkes Bay, Taranaki, Gisborne, New Plymouth, and Palmerston North.
- 07: Waikato, The Bay of Plenty, Hamilton, Rotorua, and Tauranga.
- 09: Auckland, and the islands of the Hauraki Gulf, Howick, and Northland.
Mobile number must have a maximum of 11 digits and start with a prefix of '02'.
Contact Email: enter in the contact person's email address.
The contact person to be entered should be the responsible person who the IRD can reach should they need to contact you.
Payday Filing Method: select either 'Manual file upload to IRD' or 'Connect to IRD via gateway service'
IR345 Filing Frequency: Monthly and Twice Monthly.
Monthly - Employers with less than $500,000 PAYE (including ESCT) in the previous tax year then your IR345 deduction frequency will be monthly and due on the 20th of the following month. More details on this can be found here.
Twice Monthly - Employers with $500,000 PAYE (including ESCT) or more in the previous tax year then your IR345 deduction frequency will be twice monthly. For the first half of the month (1st to the 15th of the month), your IR345 is due on the 20th of the same month and for the second half of the month (16th to the end of the month), your IR345 is due on the 5th of the following month. For more information, please click here.
Once IRD Settings page is completed, click on the 'Save' button. You will get an 'IRD settings saved' confirmation message.
Payday Filing Final Return - The IRD require they be notified if the employer will cease employing staff and will no longer be submitting Payday filing data. This checkbox will act as the indicator that the employer is submitting their final return. The checkbox MUST only be ticked when:
- the employer ceases employing ALL staff; and
- the final pay run for ALL staff has been finalised and is to be submitted.
Once you have selected the checkbox, you will notice the following warning on the Payday Filing screen for the applicable pay run:
It is the only at this time, prior to submitting Payday filing, that you can reverse the final return setting. When the final submission or download has been completed, you will no longer be able to complete any further Payday filing activities. Rather, you will see the following message when trying to submit Payday filing for a pay run:
Please do not play around with this setting if you do not meet the criteria above. Otherwise, you will need to liaise with the IRD to rectify the final lodgement notification to them.