Waikato Business News September/October 2018

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30 WAIKATO BUSINESS NEWS September/October 2018 Coming soon: payday filing The way employers report payroll information to Inland Revenue (IRD) is changing. Following the introduction of a new electronic reporting system, employers have had the option of filing payroll information every payday since 1 April 2018. From 1 April 2019, the new system will be compulsory for most employers, so it is imperative business owners get to grips with the new rules to avoid the risk of non-compliance. TAXATION AND THE LAW > BY HAYDEN FARROW Hayden Farrow is a PwC Executive Director based in the Waikato office. Email: hayden.d.farrow@pwc.com Under the old system, employers filed information about employee earnings and PAYE with IRD every month, regardless of how frequently they paid their employees. Under the new payday filing system, the information must be reported every time employees are paid, which could be complex for businesses with a combination of employees paid weekly, fortnightly and monthly. However, it is hoped that the new system will enable IRD to receive more timely and accurate information, providing employers and employees with increased certainty about their tax obligations and entitlements. From 1 April 2019, the new system will be mandatory for any New Zealand employer who withholds more than $50,000 PAYE and Employer Superannuation Contribution Tax (ESCT eg. Kiwisaver) per year. Paper filing will remain available for smaller entities who do not exceed this threshold, although they may also opt in. The details submitted to IRD will remain substantially the same, with additional information required in respect of ESCT payments, the pay cycle frequency, pay period start and end dates and the payday date. There will also be amendments to the way information is collected for new employees. The payday filing system will allow electronic onboarding of new starters, eliminating the need for the existing paper form process. The information will then be directly transmitted to IRD. IRD’s electronic system supports three ways of collecting the employment information. There is an option for direct filing from payroll software, depending on the accounting software used by the employer, bypassing the need for files to be uploaded through the ‘myIR’ system. Alternatively, information can be submitted electronically or manually through the employers’ online ‘myIR’ account. Generally, payday filing will require employment information to be submitted within two working days of each payday. So, for a business with a combination of employees paid both monthly and fortnightly, the filing deadline will be within two working days of both the monthly and fortnightly payday. However, for IR56 taxpayers, or employees below the $50,000 threshold, the deadline will be extended to within 10 working days of each pay date, with an option to submit a single monthly report. A further deviation from the ‘two day’ deadline lies in the area of employee share schemes (ESS). From 1 April 2017, the new employee share scheme rules have imposed a taxable benefit when employees are given shares for free, or when they have purchased shares below market value. Employers are required to report these taxable benefits to IRD; however, under the payday filing rules this remains a monthly obligation which effectively overrides the two day reporting requirement. The payday filing rules encompass this by deferring the date of the ESS benefit until the 20th day after the employee receives the benefit. For example, if an employee received free shares from their employer on 5 October 2019, the payment date for the purpose of reporting the benefit to IRD would be treated as 25 October 2019. Despite the increased reporting frequency required by payday filing, PAYE payment dates and methods of payment will remain the same. This means employers will continue to file an IR345 (employer deductions form) and send through payment to Inland Revenue once a month. Although the increased reporting frequency may appear burdensome at first glance, there is an opportunity for payday filing to reform payroll processes, becoming an integral part of the general accounting system rather than an additional monthly task. This integration will work best for software systems that can file directly to IRD, or for systems that can upload data directly to the IRD system. Although payday filing is currently voluntary, lots of software providers have already switched to the new system, providing the opportunity for employers to get to grips with the new rules before they become compulsory. Some employers may need to upgrade their existing payroll systems and procedures to ensure compliance by the mandatory deadline; hence, it is important that employers start considering the impact the changes will have now. The comments in this article of a general nature and should not be relied on for specific cases. Taxpayers should seek specific advice. Russell Drake Consulting provides specialist support to business owners and managers to enhance organisational efficiency, growth and profitability. We will work with you to develop solutions across a range of Employment Relations, Human Resource, Management/ Business Consultancy and Recruitment disciplines. Make us part of your team today. As your business grows it is more and more difficult to manage all aspects of your business. Is it time for you to outsource your Employment Relations and Human Resource requirements? As a company that exclusively represents the Employer, we offer practical, legally compliant advice to help you sort out your concerns quickly and efficiently. Our current suite of services includes: Employment Relations Advocates • Employment Law Advice • Representation in Mediation • Representation in the Employment Relations Authority • Advice on Misconduct, Serious Misconduct and Complaint Incidents • Employee Discipline and Performance Management Process Facilitation • Drafting Legally Compliant Correspondence to Employment Problems • Independent Investigations • Employer Representation in Personal Grievances • Employer Representation in Collective Bargaining / Negotiations • Restructuring and Redundancy Planning and Facilitation • Union Negotiations • And much more Human Resource Consultants • Advice and Coaching on Addressing Employee Concerns • Tailored Employment Agreements, Policies and Procedures • In-house tailored training • Salary and Wage Rate Benchmarking • Drafting Job Descriptions and Handbooks • Employee Performance and Appraisal Processes • Induction and Exit Strategies • Employment Culture Surveys • Development of Strategies to Enhance Organisational Culture and Staff Wellbeing • Independent Facilitation of Employee to Employee relationship disputes Recruitment Providers (Fegan & Co 2017 Ltd) You employ the people you like, we employ the people you need. With our expert knowledge of Employment Relations, we appoint people who will add value to the business and have the correct attitudes and behaviours to enable them to effectively integrate into your organisation. • Clearly Identifying the Attributes required for the Role • Drafting and Placement of Search Advertising • Candidate Care Management Processes • Behavioural Based Interviewing and Reference Checking • Psychometric Profiling (OPRA) • Ability Profiling (numerical, verbal, abstract reasoning and skills assessments) • Recommendations on Remuneration and Incentive Strategies • Drafting Offer Documentation • Facilitation of Offer Negotiations As an Employer, if you need assistance navigating the minefield of Employment Relations issues, Human Resource Assistance or looking for your next Employee, contact Russell Drake Consulting, knowing that they are on your side. Employment relations advice – personal grievance representation collective negotiation support & independent workplace investigations. Russell Drake Consulting Ph: 07 838 0018 www.russelldrakeconsulting.co.nz J6750P
WAIKATO BUSINESS NEWS September/October 2018 31 Plant scientist wins coveted lifetime achievement award Plant and Food research scientist Dr Philip Elmer won a lifetime award at last month’s Kudos Awards. Dr Elmer leads a plant research team with more patents and biological product success than any other in New Zealand, and won the University of Waikato Lifetime Achievement award on September 27. He began his science career in the 1980s wanting to make a difference. While most were focused on finding new pesticides, Phil saw the tide was starting to flow toward organics and consumer demand for food without pesticide residue. In 1997 his skills were put to the test dealing with a crisis in the New Zealand wine industry. Fungicides used to control grape rot were failing and leaving detectable residues in wine. Phil led the development of innovative biological controls, which were later patented and have become a global export as well as being critical to sustainable practice in the local wine industry. Dr Elmer’s team achieved similar success delivering integrated pest management practices and tools to the NZ summerfruit industry. Since 2010, Phil’s experience has been critical in the response to Philip Elmer won an award marking decades of research. vine-killing bacterial disease Psa, helping to fast-track the planting of new kiwifruit lines. Earlier in the evening Phil’s Ruakura Plant Pathology team won the Kudos Science Trust Agricultural Science Award. His team also received the Prime Minister’s Science Prize for this work in 2017. “Being a recipient of the Waikato University Lifetime achievement award is a huge honour for me and also for The New Zealand Institute of Plant & Food Research,” he said. THE 2018 KUDOS AWARD WINNERS: Dr Philip Elmer, University of Waikato Lifetime Achievement Award Andrea Soanes, Wintec Secondary Science Teacher/ Educator Award Kathleen Dabell, Hill Laboratories Laboratory Technician Award Dr Brendon Gill, Hamilton City Council Emerging Scientist Award Dr James Carson, Simcro Engineering Science Award Ruakura Plant Pathology Team, Kudos Science Trust Agricultural Science Award Dr Corinne Watts, Waikato Regional Council Environmental Science Award Michael Kaplan MD, PhD, Waikato DHB Medical Science Award “No one achieves an award like this without the love and support of family, friends and work colleagues and the hard work, dedication and friendship of the close-knit team I have the honour of leading at Ruakura.” Wine industry leader Dr John Forrest, says: “Phil has that rare gift of being an academic scientist who is able to communicate with everyone, plus he’s a great team leader.” His pioneering work has put New Zealand at the forefront of sustainable fruit and vegetable production. Eight categories of science excellence were awarded at the Kudos Awards, including medical, engineering, environmental and agricultural science plus recognition of science educators, lab technicians and emerging scientists. The Kudos Awards are run by the Kudos Science Trust, an indépendent advocate for science and innovation in the region. “These evenings are unique as the only regional science awards in New Zealand,” says Trust chair Prof Ross Lawrenson. “The Kudos awards demonstrate the contribution made by our Waikato scientists. They have pioneered many tools, made ground breaking discoveries, led major research projects leading to commercialisation and support our region's economic contribution - not only to New Zealand but internationally.” James Carson won the Simcro Engineering Science Award. Corinne Watts won the Waikato Regional Council Environmental Science Award. from LAB to LIMELIGHT 2018 For 12 years, the Kudos Awards have celebrated the genius of local scientists, educators and innovators and supported the incredible contributions they are making to our world. With the help of our major partners we’ve been able to award our top scientists from around the region to further their research. All that we do is possible because of our fantastic sponsors. Let’s give them the Kudos they deserve!
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Waikato Business News September/October 2018

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