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Implementing the change for PAYE Information

How should those without access to digital services provide their PAYE information?

Employers operating in rural areas without broadband internet or mobile phone coverage are a good example of those who lack digital access. The Government proposes that those without digital access would be exempt, or partially exempt, from any requirement to provide PAYE information at the time of the business process. It is proposed that the exemption process would require an application to Inland Revenue.

It is proposed that employers which were exempted would only need to provide their information once a month but would be required to show what was paid and deducted on each payday, rather than a monthly aggregation as now. Because PAYE information is calculated on a pay day basis this proposal eliminates the requirement to add the information up for each employee across the pay days in the month.

Because of the benefits that would arise from earlier provision of PAYE information, it is further proposed that in the event that there is a general requirement to provide PAYE information at the time of the business process, employers who have an exemption would be required to provide the information by the 5th, rather than the 20th, of the month following the month in which PAYE deductions were withheld.

Questions

1.  If there is a general requirement to provide PAYE related information at the time of the business process, is it reasonable to expect employers who cannot use digital services to provide disaggregated (pay day) information?

2.  Is it reasonable to expect that that information should be provided by the 5th of the following month?

Comments

David Williamson
This should continue as present. paying the PAYE bu the 20th aligns with other payments.

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8 months ago
Software training contractor
1. They'd already have that detail so I don't see why not - other than this would be seen as an imposition by some of those employers. 2. Only if it is able to be automated. If it adds to process for employers I'd say 'simplification' has failed.

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8 months ago
Delwyn Shaw
1 - No, this would add a compliance cost to them 2 - No. Depending on the timing of pay days that will sometimes not leave much time between calculating the payroll and having to provide the info if the IRD have to be advised by the 5th day of the following month

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8 months ago
Nadine Banfield
Un-reasonable. Being a small business most our book and accounting work is done periodically while working around the needs of a young family. I'm sure other small business run in a like manor.

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8 months ago
peter Warwick
The IRD should not be able to force any business to file any information by electronic means ever. This is an unfair situation for many small businesses. The IRD should allow people to change over time as businesses. software and society change. Just look at how many business have realised and utilised the online filing that works for them and slowly but surly a natural change will occur, a forced change is always a poor solution.

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8 months ago
Lisa2
The very small charity I am involved with pays people in a very part time capacity, as well as having to do GST. It is all done manually and requires a number of steps to release the funds for any payment. This type of situation needs a very simple solution.

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8 months ago
Gaylene Underwood
No. Leave as is. People in small business are busy enough at the beginning of any given month without having to worry about sending info in by the 5th. The 20th is perfect.

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8 months ago
Rebecca
I can only imagine what hoops an organisation would have to go through to get an exemption. Would the exemption be automatically granted upon application being made, or would there be an assessment by IRD of the reasons given and therefore potentially a refusal by IRD to issue an exemption if the reasons were not found to be sufficient according to whatever criteria IRD ends up being?

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8 months ago
Bernadette
Providing information by the 5th is not reasonable. Many rural people doing this work are the wives of farmers, who are often on the farm themselves, juggling that with kids, volunteer activities and at certain times of year, huge hours on farm. They cannot be expected to process this on the first day of every month. And even if they could, given that rural post often takes a week to get to its destination, you cannot reasonably expect people to be able to process this on the first day of the month. Requiring it to be delivered to town in that timeframe isn't reasonable either - many of the people requiring an exemption live a long way from town and don't go to town on a regular basis.

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8 months ago
Common Sense
1. There should be no general requirement to provide PAYE related information at the time of the business process; and 2. It is totally unreasonable for the information to be supplied by the 5th of the following month for all business processes that occurred in the previous month. 4. Further, Xero has just announced they will be increasing their subscription prices from 1 December 2015 to help support the ongoing development and innovation of software. No doubt other software developers will be following suit and this is just the start of increased compliance costs before any changes occur. This is a totally unacceptable state of affairs.

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7 months ago
Suzanne Ashton
1. I can't see a benefit in providing disaggregated (pay day) information on a monthly basis as this merely elongates the reporting process. 2. No, The 20th comes around soon enough and cash flow is often dependant on having received funds in to cover PAYE etc and these are generally received by 20th.

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7 months ago
Mario Becroft
No. 20th of the following month as now is the minimum reasonable time frame. I can't imagine having only 5 days in which to process and file all IRD paperwork each month.

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6 months ago
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