The easiest way to avoid late filing penalties from Inland Revenue


As you get used to your new payday filing obligations, Inland Revenue has introduced a three-stage approach to the application of any late filing penalties in relation to employment income information.

The three-stage approach

  • Education: The first time an employer fails to file employment income information by the due date, the Commissioner may initially look to educate and assist employers to comply with this requirement.
  • Warning Letter: Future defaults may result in the issue of a warning notice to the employer advising a late filing penalty will not be imposed this time, but in future if the information is not filed on time a late filing penalty of $250 per month will be imposed.
  • Late Filing Penalty imposed: If, within 12 months of the warning notice being issued, a further default in filing employment income information occurs, a late filing penalty will be imposed in respect of that employment income information.

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Inland Revenue emphasise that this first education step is intended to apply only during this transition period, while employers get used to payday reporting. In time it is intended that Inland Revenue will revert to using a two-stage approach i.e. issuing a warning letter, and then imposing a late filing penalty if a further default occurs within 12 months.  

You will be notified before any change to the two-stage approach is implemented.

What does Datacom offer? 

Here at Datacom we understand manually filing your employment information each pay run can be a hassle. You’re also at risk of having late filing penalties imposed on you by Inland Revenue if you miss filing within 2 working days of your employees’ payment date.  

Datacom’s automatic E-filing service means we will report your employment income information each time you run your payroll, without you having to do a thing.

We’re also continually monitoring all payday reporting jobs. We’re automatically alerted if a payday file is not successfully generated and received by Inland Revenue, and if there is an issue, we’ll work with you to resolve it.

If you’re interested in having your payday filing taken care of and like the idea of freeing up some extra time, contact our team for more information today.

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