NZ IRD Payday Filing Guidelines

Understanding Payday Filing

In New Zealand, all employers must submit employment information to Inland Revenue (IRD) within a set timeframe after every payday. This is known as payday filing. Sproutly is built specifically to automate these calculations, eliminating the need for manual payroll computation spreadsheet files.

1. Payday Filing Deadlines

The timing for filing depends on how you run your payroll:

• Digital Filing: Information must be submitted within 2 working days of the payment date.
• Monthly Payment: Even if staff are paid weekly or fortnightly, each pay cycle is filed independently.

2. Essential Employee Information

For each pay run, you must report the following to the IRD:

• Employee names, IRD numbers, and tax codes (e.g., M, ME, SB).
• Gross earnings and taxable allowances.
• PAYE (Pay As You Earn) tax withheld.
• KiwiSaver employee deductions and employer contributions.
• Student loan repayments and child support deductions (if applicable).

3. KiwiSaver Obligations

Employers must make deductions and contributions for all KiwiSaver members:

• Employee Deduction: Standard rates are 3%, 4%, 6%, 8%, or 10% of gross earnings.
• Employer Contribution: A compulsory minimum of 3% of the employee's gross earnings.
• ESCT: Employer Superannuation Contribution Tax must be calculated and deducted from the employer contribution.

4. ACC Earners' Levy

ACC levies cover the cost of work-related injuries. A portion of this (the earners' levy) is automatically included in standard PAYE tax deductions, while the employer liability portion is invoiced annually by ACC based on filed payroll returns.

Official IRD Resources

For complete guides on tax rules, tax codes, and filing specifications, consult Inland Revenue: