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Twice Monthly PAYE Returns

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I have received a letter from the IRD telling me to pay my PAYE twice a month from now on. How do I do this in Ace Payroll?

The IRD are increasingly sending letters to employers telling them to commence paying PAYE twice a month, and usually, to start using ir-file to send the IR348 Monthly Return electronically.

Usually employers are given a date in the future by which they need to start using ir-File.

Both of these are easily done in Ace Payroll without an upgrade.


Twice Monthly PAYE

  1. To pay PAYE twice a month, go to Reports then IRD Returns and choose Employer Deductions IR345.

  2. Until now you have been choosing the month you are after, then clicking Monthly Only.

  3. From now on, choose either

    First Half or Second Half to generate the PAYE for the relevant half of the month.

  4. First Half includes all pays dated between the 1st and the 15th of the month.

  5. Second Half includes all pays dated between the 16th and 31st of the month.

  6. Note that the IRD are only wanting you to complete the IR345 and pay the PAYE

    twice a month. They are NOT asking you to send in your Monthly Schedule IR348 twice a month.

  7. If you are going to continue sending the paper schedule, only send the IR348

    once a month, along with your Second Half PAYE.

ir-File Electronic Monthly Schedule

The second thing the IRD mentions in this letter is ir-File.

  • ir-File is a system that allows you to electronically send the IRD your IR348 on the internet each month, by using the IRD website at http://www.ird.govt.nz
  • Ace Payroll creates a file that you import into the IRD website each month. This saves you manually entering the data into their website.

To create the file each month in Ace Payroll

  1. Select

    Reports then IRD Returns and choose IR-File or Printed IR 348.

  2. Select the month you want and click GO.

  3. Now click on

    Electronic Filing. To create the file for the IRD, simply click GO.

  4. Your file is checked for errors. If none are found, Ace Payroll creates the file on your hard drive and a report appears on the screen.

  5. At the top of the screen, the File Name is shown. Be sure to write down or memorise this file name - you will need to type in or browse for this file name when you are using the IRD website.

  6. The first time you use the Electronic Filing feature in Ace Payroll, remember to click on Setup and make sure you have entered your Pay Clerk Name and Work Phone Number.

Remember that even though you are now paying your PAYE twice a month, the IRD only want you to electronically send them the IRD Monthly Schedule once a month, when the month is completed.

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