IRD requires payday returns to be filed within two days of the Pay Date. PayHero automatically sends your returns to IRD as part of Payday Filing, so you can avoid late filing notices by making sure your pays are dated correctly, and Sent on time.
It's also a good idea to routinely check your Tax page in PayHero to check the Submission Status of a pay.
If the pay has been sent but does not show as Submitted, then IRD might not have received that payroll return, and you'll need to resubmit it. We do show most IRD errors on your PayHero dashboard, but it's still a good idea to check the Tax page regularly and the Tax Summary Report at the end of each month.
The most common reasons you might end up in a late filing situation - and how to avoid them - are detailed below.
Incorrect Pay Date
If you've sent a pay and filed it to IRD but the pay date was set incorrectly, then to IRD it may look like the filing was sent more than 2 days after the pay date.
It's not possible to update the pay date on a pay in PayHero once it's been filed to IRD, but you can update this directly within your myIR account and let IRD know that the filing was on time and the pay date was simply incorrect.
To prevent this issue from reoccurring, ensure your Pay Cycle is set up correctly so that the pay date will default accurately for each pay period. If the Next Pay Date doesn't look correct, delete your pay cycle and create a new one with the correct dates, then add your employees to the new cycle.
Pay Sent Late
If you've created a draft pay in PayHero and paid your employees but either forgot to Send the pay or simply didn't process it until more than 2 days after the pay date, then the filing will be sent to IRD outside of the 2-day window after the pay date.
To avoid this, ensure that your pay date correctly reflects the date you'll be paying your employees, and that you Send your pays in PayHero on or before this date.
Filing Status - Withheld or Error
If your filing was unsuccessful then the status in the Tax tab will show as Withheld or Error. If you've noticed this more than 2 days after the pay date and Resubmitted the Pay to IRD, the filing will appear to be late to IRD.
Reach out to IRD to let them know how the issue arose and whether anything can be done to resolve the penalty in that instance.
Withheld - the Withheld status can occur if:
- You've used the 'Mark as Sent' option to apply the Sent status to a pay, which prevents any other actions from occurring. If you use the Mark as Sent option on a pay, you'll need to manually Resubmit the Pay to IRD. Learn more about marking pays as sent here: What is the difference between sending a pay, resending a pay, and marking a pay as sent?
- Your account wasn't integrated with IRD at the time the pay was sent. Learn more about setting up the integration here: Inland Revenue Integration
Error - the Error status can occur for a number of reasons, most of which will be presented in a Notification on your Dashboard. The notification will include a link to troubleshooting to help you resolve the issue and Resubmit the Pay to IRD.
Pay Deleted & Recreated
If you've discovered a mistake in one of your sent pays and deleted the pay and then created a new version, this will amend the original filing to $0 in myIR and the new pay will create an entirely new filing record. If this is done more than 2 days after the pay date, then to IRD the new filing will appear to be late.
Reach out to IRD to let them know how the issue arose and whether anything can be done to resolve the penalty in that instance.
To avoid this in future, rather than completely deleting a pay to correct any errors, it's best to simply remove affected employees and re-add them to the original pay. This will ensure that any changes are sent to IRD as an amendment to the original filing, rather than a whole new filing. You can learn more about this process here: Fixing a Mistake in a Sent Pay
Tip: make sure you use the 'Resend' option on the pay to file the amendment. Learn more here: What is the difference between sending a pay, resending a pay, and marking a pay as sent?
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