Date: 11th April 2017
We’re big fans of Thankyou Payroll and have been recommending their excellent free, Xero-integrated payroll software to our clients for a few years now. With proposed legislative changes to payroll and PAYE processing coming into effect over the next two years, Thankyou Payroll is making changes to the way their service works.
Thankyou Payrolls explain what the changes are and what it will mean for their clients.
Inland Revenue will require businesses and organisations to submit payroll data to them after every pay cycle, instead of once a month.
Thankyou Payroll currently submits all client payroll information, and will continue to do so, meaning no extra responsibility for their clients. They will begin submitting data daily to Inland Revenue on behalf of clients. This change has a soft switchover from April 2018 and will become mandatory from April 2019.
Inland Revenue will require the majority of businesses and organisations to submit their taxable payroll data via their online portal only. They will no longer be accepting paper submissions, unless the business is very small (under $50,000 PAYE and ESCT per annum).
For Thankyou Payroll clients, there will be no change as they currently submit all data via the IRD’s online portal. Again, this change is a soft switchover from April 2018, and becomes mandatory in April 2019.
Inland Revenue are removing the payroll intermediary subsidy from April 2018. Thankyou Payroll have been using this subsidy to run their business and to offer intermediary services free for all clients. They’ve also been donating a proportion of the subsidy to Thankyou Charitable Trust which funds micro grants to community organisations in NZ.
Whilst they are committed to keeping the service free for as long as possible, from April 2018 they will be introducing a monthly subscription fee. The fee will be competitive with other payroll intermediaries and services and will continue to offer great value for money.
They will offer a premium, full intermediary service option plus a basic level service that calculates PAYE, manages staff leave, but does not manage any money.
Registered charities will continue to have free access to all Thankyou Payroll services.
A new version of Thankyou Payroll is due out in 2018 which will simplify areas and offer a seamless experience across mobile devices and the web. We look forward to it!
If you’re keen to get your payroll online and need some help, talk to us!