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Does online access do away with paper and the need to phone Inland Revenue?
Dealing with Inland Revenue can be slow and time-consuming, involving lots of paper and phone calls (issue 1/12)
Dealing with Inland Revenue can be slow and time-consuming, involving lots of paper and telephone calls.
Many transactions with Inland Revenue remain paper-based. There is a telephone service, but during peak times delays are common.
Bov Limited owns four successful abattoirs throughout New Zealand and has 250 full-time employees and about 100 casual workers. The number of employees and employee deductions varies greatly each month.
Through its current payroll and accounting software, Bov completes and files an employer monthly schedule (EMS) (IR348) and employer deductions form (IR345).
Several working days later, Inland Revenue sends Bov a letter advising it of errors on its EMS. Once Bov Ltd has identified where and how the error occurred, it will have to amend the schedule by completing a paper EMS amendments form (IR344).
What is being proposed
Current records for each business will be available online and through their payroll and accounting software.
Businesses and employers who use accounting and payroll software that meets Inland Revenue guidelines will be able to use their software to access their tax records. Payroll and accounting software will be integrated with Inland Revenue’s systems.
The improved software will be populated with information from Inland Revenue’s system for each employee and will be embedded with error-prevention rules designed to reduce the likelihood of calculation errors. Errors will be identified immediately and amended by the software before the data is sent to Inland Revenue.
Businesses and employers will also be able to view their tax information on their secure, personalised area in the Inland Revenue website. Compliance costs will be lower, as there will be reduced need to contact Inland Revenue for updates.
Bov Limited owns four successful abattoirs throughout New Zealand and has 250
full-time employees and about 100 casual workers. The number of employees and employee deductions varies greatly each month.
Bov’s payroll clerk enters each employee’s gross wages into the integrated payroll and accounting software. Bov’s software has been populated with each employee’s Inland Revenue obligations and calculates and manages each employee’s deductions.
Errors will be identified and corrected immediately by the software before the PAYE information is submitted to Inland Revenue. Bov can view its current tax position at any time online or through its software.
