Should payroll software be used to send information about PAYE income and deductions to Inland Revenue when staff are paid?
At the moment employers are required to provide PAYE information on a monthly basis, regardless of their pay cycle. When PAYE compliance is facilitated by payroll software, this information could be provided on a pay period basis, rather than monthly. This would eliminate the current need for employers to aggregate information from each pay cycle in each month, which creates additional work and an opportunity for error. Submission of information on a pay period basis would eliminate the need to file an employee monthly schedule.
For employers already using payroll software and “file transfer” to submit their employer monthly schedule information digital submission of data from within a payroll system at the time the payroll is finalised, would eliminate the steps of saving the file of PAYE information, logging into ir-File through my IR and sending the employer monthly schedule to Inland Revenue.
If your payroll software could be used to send payroll information to Inland Revenue at the time staff are paid would it increase or reduce your compliance costs? If you can quantify the effect please do so.