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Inland Revenue

Tax Policy


  • Employers and payroll intermediaries[1] would no longer be required to file an employer monthly schedule; instead they would file PAYE information[2] on a payday basis from 1 April 2019.
  • Employers using payroll software would be able to file their information directly from their payroll system.
  • Employers would not be required to use payroll software but would have to file their PAYE information on a payday basis.
  • The smallest employers would still be able to file their PAYE information on paper if they choose to do so. The threshold for electronic filing of PAYE information would reduce from $100,000 a year of PAYE and Employer Superannuation Contribution Tax (ESCT) deductions to $50,000 a year.
  • The Government is not proposing to change the dates by which PAYE and related deductions have to be paid to Inland Revenue. However employers will be able to make these payments on payday if they choose to.
  • To improve the workability of the rules minor changes would be made from 1 April 2018 to the PAYE rules for holiday pay paid in advance and to align when rate changes come into effect.
  • The payroll subsidy, which subsidises employers to outsource their PAYE obligations to listed payroll intermediaries, would cease from 1 April 2018.

1 References to employers should be read as including payroll intermediaries

2 Terms in italics are included in the Glossary at the end of this document.