Channels for error correction It was proposed that Inland Revenue Submitters supported the proposed options. One payroll provider expressed should accept: concern about the prospect of an employer who uses payroll software Inland Revenue advises in the correcting errors through myIR. Guide” that errors error correction returns generated by “Employer’s must be corrected by phoning employer’s payroll software; an automated error correction process into payroll software for “Building the department (for a small minor errors, or errors detected within the next few pay cycles is sensible.” an employer the return ‘self-correcting’ number of errors) or by (Interest group) they have filed through Inland completing a form that requires Revenue’s secure on-line portal the figures originally sent in and is especially pleasing to see that there is flexibility in the proposals to “It (myIR); allow employers to adjust errors in the manner that works best for their what these should be changed to in this document this paper error correction returns; and business / systems (and where possible have this as an automated – process is referred to as process).” (Interest group) for small numbers of errors the the original return”. “amending correction could be advised by Self–correction through myIR: support this, especially for those submitting “I telephone. Payroll intermediaries currently by manually entering the information via myIR and sending to IR. I have have access to an automated some concerns if manual corrections are made to returns submitted from adjustment process. payroll software. This is likely to result in inconsistencies between the payroll system and the information held by IR. I’d prefer that a return submitted from payroll software was unable to be amended in myIR with any corrections done within the software and submitted to IR as a separate pay return.” (Software provider) Reporting errors Reporting errors should be corrected by Submitters who responded universally supported the proposed approach. amending the original return. Reporting errors occur when support the solutions in the in relation to reporting errors.” “We what was paid to and withheld This proposal continues current practice. (Accounting firm) from an employee is incorrectly reported to Inland Revenue. this should never happen with payroll software. If it does it implies “Ideally there is a bug in the software.” (Software provider)
Channels for error correction Inland Revenue advises in the “Employer’s Guide” that errors must be corrected by phoning the department (for a small number of errors) or by completing a form that requires the figures originally sent in and what these should be changed to – in this document this process is referred to as “amending the original return”. Payroll intermediaries currently have access to an automated adjustment process. It was proposed that Inland Revenue should accept: error correction returns generated by employer’s payroll software; an employer ‘self-correcting’ the return they have filed through Inland Revenue’s secure on-line portal (myIR); paper error correction returns; and for small numbers of errors the correction could be advised by telephone. Submitters supported the proposed options. One payroll provider expressed concern about the prospect of an employer who uses payroll software errors through myIR. “Building an automated error correction process into payroll software for minor errors, or errors detected within the next few pay cycles is sensible.” (Interest group) “It is especially pleasing to see that there is flexibility in the proposals to allow employers to adjust errors in the manner that works best for their business / systems (and where possible have this as an automated process).” (Interest group) Self–correction through myIR: “I support this, especially for those submitting by manually entering the information via myIR and sending to IR. I have some concerns if manual corrections are made to returns submitted from payroll software. This is likely to result in inconsistencies between the payroll system and the information held by IR. I’d prefer that a return submitted from payroll software was unable to be amended in myIR with any corrections done within the software and submitted to IR as a separate pay return.” (Software provider) Reporting errors Reporting errors occur when what was paid to and withheld from an employee is incorrectly reported to Inland Revenue. Reporting errors should be corrected by amending the original return. This proposal continues current practice. Submitters who responded universally supported the proposed approach. “We support the solutions in the in relation to reporting errors.” (Accounting firm) “Ideally this should never happen with payroll software. If it does it implies there is a bug in the software.” (Software provider) correcting
2018-other-mts-cabinet-papers-3-2-paye-feedback.docx