Payday Filing For Small Employers
Payday filing means telling Inland Revenue about wages and deductions every time you pay staff, not once a month. For a small employer with one or two people on the payroll, the rules are simple once you separate two things: filing the employment information, and paying the deductions.
This is an operations guide. It covers when to file, how to file, the two thresholds that decide your obligations, when the PAYE payment is due, and the penalties for getting it late. Every figure below comes from Inland Revenue.
$50,000
Annual PAYE and ESCT at or above this means you must file electronically
2 days
Working days to file employment information after each payday, electronically
20th
Of the following month: when a small to medium employer pays the deductions
$250
Inland Revenue penalty for filing employment information late
What payday filing actually is
You must file employment information every time you pay your employees. Inland Revenue bases this on the date you pay staff, the payday, which may be weekly, fortnightly, monthly, or more often if you run multiple paydays. You only file for an employee in a period when you actually pay them. Each filing must include the payday and the pay period the employee worked, along with the deductions you made. Two employees on the same payday go on the same employment information, even if one is weekly and one is fortnightly.
How to file
There are two ways to file. You can enter the information into an online form in myIR or upload a payroll file, or you can file directly from payroll software that connects to Inland Revenue. If an employee does not appear in myIR when you file, you add them as a new employee first. New employers can file electronically or by paper for the first 6 months. After 6 months you must file electronically once your total annual PAYE and ESCT reaches $50,000 or more.
The two thresholds small employers mix up
A lot of confusion comes from treating payday filing as one rule. There are two separate money thresholds, and they decide different things. One is about how you file, the other is about how often you pay.
| Threshold | What it decides | Below it | At or above it |
|---|---|---|---|
| $50,000 PAYE and ESCT a year | Whether you must file electronically | You can choose electronic or paper | You must file electronically |
| $500,000 PAYE and ESCT a year | How often you pay the deductions | Small to medium: pay monthly by the 20th | Large: pay twice a month |
Source: Inland Revenue filing employment information electronically and paying deductions to Inland Revenue. Almost every small employer sits under $500,000, so they pay monthly by the 20th and only need to watch the $50,000 electronic filing line.
Filing deadlines
The clock runs from each payday, not from the end of the month.
| How you file | When it is due |
|---|---|
| Electronically (myIR or payroll software) | Within 2 working days of each payday |
| By paper, paydays 1st to 15th | Within 10 working days of the 15th of the month |
| By paper, paydays 16th to month end | Within 10 working days of the end of the month |
Source: Inland Revenue payday filing. Filing on time matters even in a month you cannot pay the deductions, because it keeps employee records right and stops a late filing penalty.
When to pay the deductions
Paying is separate from filing. It depends on your gross annual PAYE and ESCT, not on how often you file. If that total is under $500,000 you are a small to medium employer: pay deductions monthly, by the 20th of the following month. You can choose to pay more often. Only employers over $500,000 pay twice a month, with wages paid from the 1st to the 15th due by the 20th of the same month, and wages from the 16th to month end due by the 5th of the following month, except the second half of December which is due by 15 January.
If you file in myIR, the deductions you owe for each period show under Returns and transactions, and they update every time you file. So filing accurately each payday also builds the amount you pay.
New and departing employees
On or before a new employee's first payday, tell Inland Revenue their address and their date of birth if they have given it to you, through your payroll account in myIR. On or before an employee's last day, enter their employment end date in myIR under Employees. If you stop paying wages for a month or more, employ staff irregularly, or are going to stop employing for a month or more, let Inland Revenue know so they do not expect returns you will not file.
Non standard filing
Some payments follow different filing rules: IR56 workers, out of cycle payments, holiday pay paid in advance, employee share scheme benefits, schedular payments, non resident employers, and lump sum payments such as bonuses and redundancy. If you are unsure which PAYE deductions to file for a normal payday, you can sanity check them with the PAYE calculator before you file. Filing itself is always done in myIR or your payroll software.
What trips small employers up
Three things catch new employers. First, filing and paying are not the same event: you file within 2 working days of every payday, but you pay the PAYE monthly by the 20th. Second, the $50,000 line is about electronic filing, while the $500,000 line is the one that would make you pay twice a month, and small employers rarely hit it. Third, one employee still means payday filing every time you pay them, and a quiet month with no wages needs a quick note to Inland Revenue rather than silence.
Penalties for filing or paying late
Inland Revenue: the penalty for filing employment information late is $250. If you are required to file electronically but do not, and you have no exemption, the non electronic filing penalty is the greater of $1 per employee or $250 for each schedule. For the money itself, if you do not pay your PAYE on time and do not arrange to pay, Inland Revenue adds a 10% penalty to the unpaid PAYE each month until it is paid or under an arrangement, reduced to 5% in the month you enter an arrangement and keep to it. Contacting Inland Revenue early is how you keep these down.
Source: Inland Revenue Penalties and interest IR240 (February 2026) and Employer's guide IR335. Employer registration, if you are not yet registered, is done in myIR or on an Employer registration IR334 form.
Frequently asked questions
Do small employers have to do payday filing?
Yes. Every employer must file employment information every time they pay staff, even with one employee. Inland Revenue: new employers can file electronically or by paper for the first 6 months. After 6 months you must file electronically if your total annual PAYE and ESCT is $50,000 or more. Under $50,000 you can choose electronic or paper.
How long do I have to file employment information?
If you file electronically, you have 2 working days after each payday. If you file by paper, you have 10 working days after each payday, or within 10 working days of the 15th and of the end of the month. You file based on the date you actually pay staff, not the pay period.
When do I pay the PAYE to Inland Revenue?
Filing and paying are separate. If your gross annual PAYE and ESCT is under $500,000 you are a small to medium employer and pay deductions monthly, by the 20th of the following month. Only employers over $500,000 pay twice a month. The $50,000 threshold is about electronic filing, not payment frequency.
What is the penalty for filing employment information late?
Inland Revenue: the penalty for filing employment information late is $250. If you must file electronically but do not, the non electronic filing penalty is the greater of $1 per employee or $250 for each schedule. Unpaid PAYE can attract a monthly 10% non payment penalty until you pay or arrange to pay.