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Payroll Software IRD Compliance

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How can I be sure that Ace Payroll is fully IRD compliant?

The IRD does not certify any of the payroll software available in New Zealand. They publish specifications for the IRD related features and it is up to software suppliers themselves to ensure their products are compliant.

The only feature that requires formal IRD certification is the printed Employers Monthly Schedule IR348 and IR349. In May 1999 Ace Payroll was the first New Zealand payroll software supplier to receive this certification.

Each year the IRD publishes a Payroll Specification for Developers, and it is with this document that payroll software must comply.

The relevant features are

  • Tax calculation - the specifications set out the calculation formulae for all current tax codes in both a flow chart and text format. Ace Payroll complies with these formulae. See our related FAQ.
  • Printed employer monthly schedule - specifications for this form are contained in the specification document. Ace Payroll has received certification from the IRD for this feature. See our related FAQ.
  • Electronic employer monthly schedule - file formats for this return are contained in the specification document. Ace Payroll complies with these formats. We have many related FAQ's.
  • IRD number validation - formulae to validate IRD numbers are contained in the specification document. Ace Payroll correctly validates IRD numbers.
  • Child support variation codes and protected earnings - formulae for the calculation of protected earnings are contained in the specification document. Ace Payroll complies with these specifications. See our related FAQ.
  • Extra emoluments - the formulae for taxing extra emoluments are contained in the specification document. Ace Payroll complies with these specifications. See our related FAQ.
  • School childrens earnings - the requirement to not return details of school children's earnings on the IR348 is fully handled by Ace Payroll. See our related FAQ.

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