Changes in 2018

Next April, Inland Revenue is introducing significant changes to the way employer returns are filed.

For those employers using a service like Thankyou Payroll these changes aren’t a big deal but for those employers still doing it themselves the changes will make payday admin much more time consuming and complicated. They are also proposing changes to the payroll subsidy but that may or may not happen.

IRD's proposed payroll changes

  • Employers will need to submit all payroll data (Gross, PAYE, Kiwisaver, Student Loan, etc) into IRD’s system every time they run their payroll - let’s call this “payday filing”. Employers will have 2 business days after each pay run to give their data to IRD. This replaces the current once a month filing, and could mean some businesses will need to file up to 4x more per month.
  • All payroll data must be filed digitally through IRD’s online portal *
  • Payroll Intermediaries will no longer receive a government subsidy for managing and filing PAYE on behalf of businesses and organisations as of April 2018

The first 2 changes will be voluntary adoption from April 2018, and mandatory from April 2019. The change to the payroll intermediary subsidy will be effective April 2018.

The Intermediary Subsidy

Thankyou Payroll (TYP) is a payroll intermediary meaning we manage the IRD filing side of payroll for our clients, on top of giving them an easy to use payroll tool. In return for accurate data and on-time payments, IRD has been providing a subsidy. We’ve been using the subsidy as our primary revenue and in turn offering our service for free to our clients.

Unfortunately, the increased time our staff will spend filing for the new “payday filing” to comply with legislation, alongside the removal (or reduction) of the intermediary subsidy, means TYP will have to charge a small monthly cost to our clients from 1st April 2018.

Here are two possible scenarios:

  1. The IRD decides to keep the subsidy either in full, or in part by reducing the eligibility threshold for businesses. In this scenario, Thankyou Payroll would still be able to offer our service for free to employers with less than 3 employees.
  2. The IRD removes the subsidy completely. In this scenario, we'll need to introduce a service fee for all our clients. There's no way around it unfortunately. We are committed to keeping our great service as affordable as possible, and we'll still be free for registered charities..

* an exemption to mandatory digital filing (via IRDs online portal) exists for businesses paying less than $50,000/year in PAYE+ESCT

Plans and pricing for April 2018

The changes IRD is making to payday filing will increase our workload to keep your payroll compliant. This change, along with the likely removal, or reduction of the intermediary subsidy means that Thankyou Payroll will have to charge a small monthly cost for our service starting in April 2018.

The new payday filing and digital filing rules will mean the use of an intermediary service is even more attractive to business and charity groups. Thankyou Payroll will be introducing a bunch of excellent new features in our upcoming newest version of Thankyou Payroll in 2018. We’re also committed to keeping our service affordable while offering an optimal product, and remaining free for registered charities.

We still aren’t sure exactly what is happening with the subsidy from 1st April 2018, so we’ve got two potential pricing scenarios:

With the subsidy

This is our pricing plan plan for businesses
if the IRD subsidy remains

1-3 EMPLOYEES free 2-day processing
4-10 EMPLOYEES $19/mo 2-day processing
11-30 EMPLOYEES $39/mo 2-day processing
31-50 EMPLOYEES $69/mo 2-day processing

Our pricing for registered charities
with OR without the subsidy

1-50 EMPLOYEES free 2-day processing

Without the subsidy

This is our pricing plan for businesses
if the IRD subsidy is removed

1-3 EMPLOYEES $14/mo 2-day processing
4-10 EMPLOYEES $19/mo 2-day processing
11-30 EMPLOYEES $39/mo 2-day processing
31-50 EMPLOYEES $69/mo 2-day processing
  • Two-day processing incurs no additional charge.
  • One-day processing costs an extra 50 cents per pay per person.
  • Overnight processing costs an extra 75 cents per pay per person.
  • Same-day processing costs $20 plus 75 cents per pay per person. *New!

A bit more detail

Two-day processing

It will take us two business days to transfer the pay to your employees, after you’ve transferred it to us.

For example, your pay week is Monday to Sunday, and you transfer to us on Monday night. Your employees will be paid overnight Wednesday for a Thursday pay day. more info »

One-day processing

We will transfer the pay to your employees the next business day, after the money clears into our trust account.

For example, your pay week is Monday to Sunday, and you transfer to us Monday night. Your employees will be paid overnight Tuesday for a Wednesday pay day. more info »

Overnight processing

This suits employers who need a really fast turnaround in paying their staff.

Employers can choose this option if they have an account with one of these banks: Kiwibank, BNZ, ASB, TSB, ANZ, Westpac bank. more info »

Same-day processing

Introducing the latest way Thankyou Payroll can take the stress out of your payroll. The quickest of our plans: If you’ve forgotten to process your payroll and your employees are screaming blue murder give us a call and we can sort it out on the same day. This option is only available weekdays excluding bank holidays.

Employers can use this feature if they have an account with one of these banks: Kiwibank, BNZ, ASB, TSB, ANZ, Westpac bank.