This article explains how to lodge your payday filing employment information directly to Inland Revenue (IR) through the gateway service in Employment Hero Payroll. Payday filing consists of Employment Information, Employment Information Amendments, and Employee Details for new and departing employees.
You can lodge your payday filing employment information directly to the IR via the gateway service.
Payday filing consist of the Employment Information, Employment Information Amendments and Employee Details - New and Departing.
NB: Version 2 (V2) of Payday filing will take effect from 1 April 2021. Inland Revenue will not be accepting any Version 1 reporting after 31 March 2021. It is also important to note that you must complete the original employment information (EI) and any amendments in the same version of Payday filing. For example, if you submit an original EI using V1, then you cannot complete an amendment for that EI using V2. If this scenario does arise, you will need to contact the IRD for manual intervention.
Please note that entities with separate NZBN's cannot be lodged on pay day filings with the different NZBN's. Currently individual NZBN's require a separate Employment Hero Payroll file for successful and compliant lodgements. Only the primary NZBN will be communicated.
Employment Information file is detailed below. Refer to the below articles for more information on the Employment Information Amendment and Employee Details.
- Employment Information Amendment
- Employee Details (New and Departing)
All employers are required to report employee payments every pay cycle and submit these details to the Inland Revenue (IR) within two working days of the payday. Businesses who make over $50,000 PAYE and ESCT deductions a year, will be required to file electronically and businesses that pay less than this can choose to file electronically or on paper.
Below are the instructions on how you can lodge your payday filing employment information directly to the IR using the gateway service.
Firstly, make sure you are set up to connect to the IRD gateway services by checking your business IRD Settings. You must complete all the fields within the IRD Settings screen and have your 'Payday Filing Method' set to 'Connect to IRD gateway services' as shown below. Remember to save your IRD settings by clicking on the 'Save' button.
Once your business IRD settings have been completed you can create a new pay run, support article on how to create a new pay run can be found here.
Once your pay run has been finalised, the following 'Payday Filing' button will appear. Click on the 'Payday Filing' button.
Please note: If there is no "Payday Filing" button on your finalised pay run this means you created the pay run before putting your IRD Settings in place. Please follow these steps to show the "Payday Filing" button:
1. Click on "Pay run actions" and then "Unlock" the Pay run
2. Click on "Pay run actions" button again then click on "Recalculate Pay run"
3. Finalise the Pay run
Once you finalise the pay run the "Payday Filing" button will appear.
Clicking on the 'Payday Filing' button will take you directly to the Payday Filing reporting page. The first time you are using the IRD gateway service, you will need to connect to the service. To do this, click on the 'Connect' button as shown below.
The following pop up message will appear, please confirm that you wish to connect to the IRD gateway services by clicking on 'OK' button.
Clicking on OK will redirect you to the myIR login page, you will need to enter in your myIR login and password details.
Once you have successfully entered in your myIR details, you will be directed back to the payday filing page which will show you are now connected to the IRD gateway services.
When you are ready to lodge the payday filing employment information, click on the 'Submit Payday Filing' button as shown below.
Once the payday filing employment information has been submitted successfully, the status, lodged by (including date and time of submission) and the IRD receipt number are populated.
The 'check now' button within the status line allows you to check the polling status updates from the IRD. Once payday filing is processed by the IRD, then the status will be updated from 'Submitted' to 'Submission Received'.
Please note - once a return has been filed it can take up to 24 hours (or longer) for the status to change, you may wish to contact the IRD to follow up on the processing of your payday file.
You will also notice in the pay run view, the 'payday filing submitted' icon will display.
For those users who have not completed their IRD settings page and have already created pay runs, we have created an option to download the pay run details to CSV from within the pay run itself where you can then enter the necessary IRD details and upload the data back into the system. Before this option was available you would have had to delete the pay runs and re enter the data which you can imagine would be a timely task.
Payday filing errors
There may be instances when errors are returned upon submission of your payday filing to the IRD. The errors need to be corrected before you can resubmit the payday filing.
Payday filing errors will show a 'Submission error' status and the error will be listed in the yellow section as shown below.
You will also notice in the pay run view, the 'payday filing submission errors' icon will display.
The known errors (to date) and how to correct the errors:
| Errors | How to fix the errors |
| The IRD has no record of employee (given name and surname) | Ensure you have submitted the payday filing employee details to the IRD so that the IRD has the employee on record prior to submitting the payday filing employment information. |
| The recorded date of birth does not match what the IRD has on file | Check the employee's date of birth within the employee's file. Submit the payday filing employee details to the IR to correct details first before submitting the payday filing employment information. |
| The recorded start date does not match what the IRD has on file | Check the employee's start date within the employee's file. Submit the payday filing employee details to the IR to correct details first before submitting the payday filing employment information. |
| The IRD is expecting tax code <employee tax code> for this employee | Check the employee's tax code within the employee's file. Submit the payday filing employee details to the IR to correct details first before submitting the payday filing employment information. |
| The IRD is not expecting tax code <employee tax code> for this employee | Check the employee's tax code within the employee's file. Submit the payday filing employee details to the IR to correct details first before submitting the payday filing employment information. |
| Authentication failure | This error occurs when there has been a change to your IRD log in details/ portal e.g. password has changed. To fix this, you will need to disconnect from the IRD gateway services by clicking on the 'Disconnect' button and then click on the 'Connect' button again. Then log into the IRD portal with your username and password details. |
| Missing authentification token(s) | Same as "Authentication failure" above. |
| Unauthorised access / delegation / vendor | Based on the IRD log in details/ credentials provided, you do not have the authority to lodge payday filing. You will need to contact the IRD to confirm your credential details for the business. |
| Duplicate payday submission | You have already previously submitted the payday filing employment information for the same reporting period. Check to ensure whether you need to submit the payday filing amendment. |
| Period too far into the future | Unable to submit payday filing with pay run period date too far into the future. Check your pay run period date and ensure the correct reporting period has been set. |
| Invalid filing period | Same as "Period too far into the future" above. |
|
XML request failed validation |
Data issue not accepted by the IRD e.g. negative earnings. Negative earnings are not accepted by the IRD. You will need to ensure earnings are presented as positive earning amounts. You should also check the business phone numbers entered do not include any spaces or brackets. |
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Payroll contact phone number is required in the business IRD settings |
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. |