GST AND PAYE

When you register for GST, you have two choices to make.

Taxable period (how often you’ll file returns) — monthly, two-monthly or six-monthly.
Accounting basis from these options:

  • Payments basis — you account for GST in the taxable period in which you’ve made or received a payment.
  • Invoice — you account for GST in the taxable period when you’ve sent or received an invoice (even if the payment hasn’t been made).
  • Hybrid method — a combination of payment and invoice methods.

Our firm recommends that you consult us before making your GST choices, as an incorrect choice can have consequences. 

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Each pay period you need to calculate and deduct PAYE. Each payday you send Inland Revenue the pay details for your employees. You also need to provide employee details, like start and end date, contact details and date of birth, for new and departing employees.

There are three options for payday filing:

  • Directly from your accounting software (if it’s been enabled for payday filing).
  • Online through Inland Revenue’s myIR service.
  • On paper forms — but only if your annual PAYE and ESCT (employer superannuation contribution tax) is less than $50,000 or you’re a new employer.

PAYE is pretty straightforward once you’re set up. But different rules can apply to some payments, eg lump sum payments like bonuses or retirement payouts, or to special types of workers. If you’re at all unsure of what you need to do, speak to Inland Revenue or to our firm.