This article explains when PaySauce files and pays your PAYE to Inland Revenue (IRD), how the payment schedule works for different employer types, and the role PaySauce plays as your PAYE Intermediary.
When PAYE is filed and paid
PAYE is calculated based on payday, not pay period dates. For example, any payment made to staff during March is part of March's PAYE, even if the period worked was in February or April.
Employer type | PAYE due dates | Who this applies to |
Standard employer | 20th of the following month | Most PaySauce customers |
Large employer | 5th and 20th of the following month | Employers classified as 'large employers' by IRD (those who deduct more than $50,000 of PAYE and ESCT per year) |
If the due date falls on a weekend or public holiday, the payment is made on the next business day.
What you may see from IRD
For periods where PaySauce is acting as your PAYE Intermediary, the payment will show as due with IRD on the due date in your MyIR account. IRD's system may issue an automatic due notice on or shortly after that date, even when the payment is being processed.
PaySauce always pays on the due date (or the next business day if it falls on a weekend or public holiday) for the periods we are linked as your Intermediary. We have never made a late payment. If you receive a notice from IRD and want reassurance, get in touch and we'll confirm whether the period in question was covered by us and check the payment status. For example, if you can see that the notice relates to a period of time where we were not acting as your PAYE Intermediary, this will be your responsibility. For a period when we were linked and acting as your PAYE Intermediary, we can give you reassurance that we've got it covered.
What a PAYE Intermediary is
A PAYE Intermediary acts on behalf of an employer to file and pay PAYE to IRD. PaySauce, through our wholly owned subsidiary Right Remuneration Ltd, is your PAYE Intermediary (unless you have chosen to manage your own PAYE). This means we:
File the required payday information with IRD each time a pay is closed
Make PAYE payments and related deductions to IRD on your behalf, including KiwiSaver, student loan deductions, and child support
Respond to any IRD queries about the PAYE payments and make any necessary adjustments (provided we were acting as your Intermediary at the time in question)
How PaySauce manages your IRD payments
When each pay is closed, PaySauce collects the PAYE amount and related deductions from your bank account.
PaySauce completes the payday filing with IRD.
The collected funds are held in a specially managed trust account that can only be used for paying PAYE and related deductions to IRD.
On the due date, PaySauce pays the funds to IRD on your behalf.
As a PAYE Intermediary, Right Remuneration Ltd must comply with the obligations set out for PAYE intermediaries in the Income Tax Act 2007. The funds in our trust account cannot be used for any other purpose.
How we keep your payments safe
We take the security of your PAYE funds seriously and operate to strict regulatory and operational standards. This includes:
A dedicated trust account used solely for holding and paying PAYE
Strict processes for funds management, security, and privacy
Compliance with the obligations set out for PAYE intermediaries under New Zealand law
As a business listed on the NZX, PaySauce is also subject to high reporting and audit standards. Our annual and interim reports, including auditor statements, are published on our website and available to anyone who wants to review them.
Common questions
I've received a notice from IRD saying my PAYE is due - should I be worried?
It depends on whether PaySauce was acting as your PAYE Intermediary for the period the notice relates to.
If PaySauce was your PAYE Intermediary at the time: no, you don't need to worry. IRD's system can issue an automatic notice on the due date even when payment is being processed by your Intermediary. PaySauce pays on the due date (or the next business day if it falls on a weekend or public holiday). If you'd like confirmation, contact us in-app and we'll check the payment status for you.
If PaySauce was not your PAYE Intermediary at the time: the notice relates to a period you were responsible for filing and paying directly, or a period covered by a different provider. You'll need to follow this up with IRD or your previous provider. If you're not sure whether we were linked as your Intermediary for the period in question, contact us in-app and we can confirm.
Why does my PAYE for March include a payment from late February?
PAYE is calculated based on the payday, not the pay period. If staff were paid in March for work done in late February, that PAYE falls into March's filing.
My business pays PAYE twice a month — why?
You're classified by IRD as a large employer, which applies to employers deducting more than $50,000 of PAYE and ESCT per year. Large employers pay PAYE on the 5th and the 20th of the following month rather than just the 20th.
Can PaySauce respond to IRD on my behalf?
Yes, as your PAYE Intermediary we can answer IRD's questions about PAYE payments and help you make any necessary adjustments, as long as we were acting as your Intermediary at the time in question. If you require our support to carry out amendments relating to pays that you have not entered and filed correctly in PaySauce, we may charge you fees for completing this depending on the nature and complexity of work required and why it is needed.