Software which will enable SMEs to submit PAYE information to Inland Revenue is expected to be widely available and relatively inexpensive. However, some employers may still face a cost barrier to its adoption.
At present, a payroll subsidy of $2 per employee per pay period, for up to five employees, is available to employers with annual PAYE deductions of less than $500,000, provided the employer uses a listed payroll intermediary. This subsidy is paid to the intermediary. At least one payroll intermediary uses this subsidy to provide a free service.
1. Do you think that financial assistance, such as the existing payroll subsidy or something else, should be available to assist employers take advantage of the new digital services proposed to modernise PAYE information?
2. If so what factors should any such assistance target?