In a 2013 survey of small and medium enterprises (SMEs) carried out for Inland Revenue, the median value for time spent on PAYE and KiwiSaver obligations was 21 hours a year.
Feedback suggests that many employers find their PAYE role onerous. The system was designed for a paper-based world and it creates problems for employers and employees, and it does not deliver information to government in a timely or accurate way.
Feedback has identified the following concerns for employers with the current PAYE information process:
- difficulties in setting up new staff;
- problems changing deductions;
- difficulty in making changes to information already filed;
- problems with understanding and reconciling the information Inland Revenue makes available to employers; and
- concern about the time it takes Inland Revenue to process employer monthly schedules and action amendments.
1. Are these the key areas of concern with the PAYE information process from an employer’s perspective?
2. Are there other aspects of the process of providing PAYE information that are significant sources of frustration/wasted time that should be rectified?