Answer
The New Zealand tax year runs from 1 April to 31 March. There is no separate year-end finalisation step with Inland Revenue ÔÇö Employment Information is filed after each payday throughout the year. The checklist below covers the actions to take when the tax year closes.
1. File Employment Information for your last pay run
Process and complete your final pay run for the tax year as normal. When you file Employment Information for that pay run, tick Final return (no further EI expected) to signal to Inland Revenue that no further Employment Information is expected for this employer in the current cycle.
In the desktop app: open the pay run, then go to Pays and choose Submit Payday Filing To IR. Tick Final return (no further EI expected) before submitting.
In the online (web/mobile) app: open the pay run and go to NZ Payday Filing — Employment Information. Tick Final Return, connect to Inland Revenue, then review and confirm the submission.
2. Check that all Employment Information has been accepted
After the final submission, open the Payday Filing Mailbox and check that all returns for the year have a confirmed response from Inland Revenue. Retrieve any outstanding returns and resolve any errors before the new tax year begins. See How Do I Use The Payday Filing Mailbox And Retrieve A Return? for guidance on checking pending responses.
3. Verify year-to-date totals for each employee
YTD totals reset automatically when the first pay with a pay date on or after 1 April is completed. Before that reset, confirm the final-year figures match what was filed with Inland Revenue.
In the desktop app: open each employee and review the YTD totals from the employee record.
In the online (web/mobile) app: open an employee, go to the YTD tab, and review the Year To Date Summary screen. Select the closing tax year from the Financial Year dropdown to confirm the final gross, PAYE, KiwiSaver employee, KiwiSaver employer, ESCT, and student loan figures.
4. Submit any outstanding Employee Details tasks
If any employee records were created, updated, or terminated during the year, confirm that the corresponding Employee Details tasks have been submitted to Inland Revenue's Employment Service. Outstanding tasks appear in the NZ Employee Details screen in the Pays area of the online app, or in the Employee Details Dashboard from the Pays menu in the desktop app.
5. No PAYE payment summary or STP finalisation is required
There is no PAYE equivalent of an Australian STP finalisation or group certificate. Inland Revenue uses the Employment Information filed throughout the year to reconcile each employee's income. Once the final EI has been accepted by Inland Revenue, no further year-end lodgement is required.
For background on how YTD figures work across the year boundary, see How Does Lightning Payroll Handle YTD Figures And Pay Processing Dates? For details on what the final return checkbox does versus a nil return, see What Do Nil Return And Final Return Mean In Payday Filing?
