This week the government released an official’s issues paper presenting options on how to manage errors in relation to PAYE filing. With new proposals set to make PAYE filing a much more regular activity for employers using digital services, it seems the government are looking to streamline things further.
Without doubt more regular filing will lead to more regular contacts regarding errors so the IRD are keen to strike a balance between accuracy and cost. However, it is noted that the proposals to simplify the error correction process should apply to all, not just electronic filers. Within the paper we also have an insight into some of the features to be expected in the new IR system once migration is completed. One nice feature is that an error in an employee’s data will only delay that particular record and not the whole “pay day” submission.
The key principals of the solutions suggested are to allow employers to manage their own adjustments where possible by being able to make their own amendments to returns already filed via payroll software, myIR, or over the phone for paper based filers. There are limitations depending on value. In some circumstances, it also may be allowable to simply make adjustments in the next return - though IRD are keen to understand impacts of doing do so where the next return falls into a new financial year.
The paper is very detailed in terms of how each type of error can be corrected and officials are asking for a lot of specific questions to ensure they get this right. Anyone with day to day experience in dealing with the IRD for PAYE would benefit in reviewing this to get more insight into the changes as well as providing any feedback on the proposals.
The closing date for submissions is 15 September 2017.