Employer Deductions (IR345) form is used to record and pay the deductions made from the employees pay. This form should correspond to a payment made to Inland Revenue (IR) either directly or electronically.
Although payroll information is submitted on a per pay run basis to the IR via payday filing, there is no change to the due date for submitting the IR345 and accompanying payment.
Please note, if you are reporting as part of payday filing to the IRD, then the IR345 does not need to be manually uploaded to your MyIR portal as IR345 information is now automatically generated by the IR from your payday filing reporting.
However if you wish manually upload the IR345 to replace the IR generated IR345 version (it is recommended you contact the IRD first to provide the reason why you wish to replace the auto generated IR version of the IR345) then you still can by following the below instructions.
To begin using the Employer Deductions (IR345) form, you must complete the business IRD Settings and set the 'IR345 Filing Frequency'.
IR345 Filing Frequency: Monthly and Twice Monthly.
Monthly - Employers with less than $500,000 PAYE (including ESCT) in the previous tax year then your IR345 deduction frequency will be monthly and due on the 20th of the following month. More details on this can be found here.
Twice Monthly - Employers with $500,000 PAYE (including ESCT) or more in the previous tax year then your IR345 deduction frequency will be twice monthly. For the first half of the month (1st to the 15th of the month), your IR345 is due on the 20th of the same month and for the second half of the month (16th to the end of the month), your IR345 is due on the 5th of the following month. For more information, please click here.
Once your business IRD settings are completed, then the IRD reporting section within Reports will be available.
Firstly, process your regular/ adhoc pay runs. Make sure you have finalised all the pay runs, as only finalised pay runs will include the associated deduction amounts in the Employer Deductions report.
The instructions on how to generate the Employer Deduction (IR345) shown below.
Go to Reports > IRD Reporting > Employer Deductions Report (IR345):
The 'From Date' and 'To Date' will auto-populate based on your IR345 reporting frequency, ensure the date range is correct, then click on 'Run Report'. The deduction breakdown for the reporting period will display on the screen for your review.
The below screenshot shows an example of 'Monthly' IR345 frequency.
The below screenshot shows an example of 'Twice Monthly' IR345 filing frequency.
If you click on the 'Actions' button, there are three options - 'CSV Export', 'Recalculate' and 'Delete'.
CSV Export - clicking on CSV Export will generate the IR345 and you confirming that you will upload the IR345 to the IRD.
Recalculate - clicking on Recalculate allows you to recalculate and re-generate the IR345.
Delete - clicking on Delete will delete the row item, however the delete functionality is only available if you have NOT lodged the IR345 to the IRD.
Further details on these actions below.
'Delete' is only available within the 'Actions' button if the IR345 has NOT been lodged to the IRD (i.e. by clicking on the CSV Export and confirming 'OK' for lodgement). Once you click on 'Delete' it will remove the deductions row.
'Recalculate' can be used to recalculate the values of your deductions where you have Unlocked a pay run to make edits to any deductions.
A 'Confirm Recalculation' message will appear to advise that you are required to resubmit your updated IR345 to the IRD if an IR345 has already been submitted for that reporting period. Though if you have not previously submitted the IR345 for that reporting period to the IRD then that is fine.
Once you have reviewed the deductions and are ready to generate the IR345 for upload to your IRD myIR portal, click on the 'CSV Export' button.
A 'Confirm Download' message will appear. If you are not ready to lodge to the IRD, then click on 'Cancel'. You can return to the Employer Deductions Report (IR345) to submit later. If you are ready to submit and upload the IR345 to the IRD, then click on 'OK'.
IMPORTANT: Please note that generating this report will not make the actual payment automatically to the IRD. It is your responsibility to pay the IRD either directly or electronically, more information on payment options are on the IRD website.
Once you have clicked on 'OK', the IR345 will generate in CSV format for upload to IRD. Also, the 'Date Lodged' field will populate with the generated date on the Employer Deductions Report (IR345) screen display.
You can click on the 'IRD Portal' text from the IR345 Report page which will take you directly to the IRD portal.
IMPORTANT NOTE: when uploading your employment information report to myIR, please make sure you are uploading the original downloaded file. DO NOT open and save the report to your own drive as this will cause file formatting issues and as a result will return errors within the IRD portal submission.
For more information on how to upload the IRD reports, please refer to instructions on the IRD website.