The Government is consulting on changes to the way businesses and taxpayers deal with Inland Revenue. Proposed changes would make it easier for businesses to manage their tax obligations online and reduce compliance costs.

The Government is seeking New Zealanders’ opinions of the proposals before any changes are made. Feedback is invited through a public online forum and formal discussion document.

Proposed changes would mean simpler PAYE and tax returns, better online services provided by Inland Revenue, less re-work, and reduced business compliance costs. New payroll software would take care of routine PAYE compliance tasks, and tax information could be sent directly between Inland Revenue systems and business payroll software, at times that suit business.

The consultation includes proposals to share information with other government departments, to make it easier for employers and their staff where people are swapping employment, going on parental leave or managing child support.

Strategic partnerships between software developers and Inland Revenue are also proposed, to support software developers to develop and improve tax-related software products for their clients.

You can influence how tax processes might work in the future by visiting www.makingtaxeasier.ird.govt.nz and commenting on the proposals. Videos and stories on the site show differences between dealing with Inland Revenue now and what the future could hold.

The forum will remain open until 23 July 2010.

On 21 June 2010 the following article was printed in the Dominion Post: (Click the thumbnail image to see the full article)

Article printed in the Dominion Post

Deductions

Deductions have been modified to enable bank accounts to be loaded. This means that any deduction can be paid directly into a bank account without using up a normal bank account area.  Follow these instructions to set up a deduction with a bank account:

1.   Go to the Company Maintenance area
2.   Select Company Rules from the Links pane
3.   Click NEW to add a new deduction
4.   Ensure the Fixed Dollar Amount and Direct Credit checkboxes are selected. 
5.   Save the details.
6.   Next, select EMP Contract Groups in the Links Pane and ensure the deduction is activated for the correct employee group.
7.   Enter relevant details here if the deduction is for all staff, or go to an employee’s own Employee Payments screen to personalise this deduction and enter the bank account the deduction amount will be sent to.
8.   Remember to save the details at the bottom of the screen.

If you have any queries about the new deduction options, please call the Helpdesk for support: 0800 10 10 38.

Smartpayroll is now running payroll courses though The Business Centre in Wellington.  The courses are free and will run on 19 October and 19 November. These courses are for anyone who has to or is looking to manage employee entitlements and payroll processing.   At the end of this course you will know how to run a payroll in 5 minutes and, even better, sleep easy knowing your IRD obligations have been met.