IRD Validation Changes

From 4th of October 2025, IRD’s Payday EI service will feature 5 new validation checks. Any submission that fails the validation checks will cause the entire EI submission to ERROR and it must be corrected in order to achieve a successful resubmission.

The only validation check impacting PayGlobal customers is the one relating to KiwiSaver. In short, Contractors aren't employees for KiwiSaver purposes. PayGlobal will be updated to prevent you processing pays for employees with Tax Code WT that contain KiwiSaver Contributions.

For more information on what changes are happening in PayGlobal refer to the release notes.

How do I determine if I am impacted by the change?

1. Go to: Employee Details | Payroll | Employee Super Funds (this is a makeup table)

2. Customise columns to show: Employee code, Employee Name, Employee Tax code, SuperFund Code, SuperFund Description, SuperFund KiwiSaver Status, Active, Start Date and End Date.

3. Add a filter to the column "Superfund KiwiSaver Status" and select only KiwiSaver Scheme

4. Add a filter to the column "Active" and select True

5. Add a filter to the column Employee Tax code and choose Custom then set as equals "WT" or equals "NSW"

Hint: If you have good maintenance practices in place, you should not end up with any terminated employees with an Active or open ended Superfund record.

Some of the changes being applied to Contractors, are an extension of what PayGlobal does for for Non Seasonal Workers who also aren't allowed to do KiwiSaver. However the next release will also include new functionality to prevent you from doing the wrong thing as early as possible. I.e. stop you from adding/editing transactions to a pay. Therefore the above steps apply to employees on tax code NSW too.

How can I prevent PayGlobal from automatically creating KiwiSaver Contributions for Contractor and/or Non-resident Seasonal Worker employers?

Most New Zealand databases have their KiwiSaver as per our Superannuation and Salary Sacrifice Manual.

This setup includes instructions on how to setup a payroll rule to create superannuation transactions.
It is recommended that you update the Employee clauses of this payroll rule to include new clauses:

and Tax code is not equal to WT
and Tax code is not equal to NSW
and Super fund. Has super fund of “KIWISAVER” is True

As an extra precaution, you can amend the Action clauses to:

Create Super all Allowances from SuperFund < > KIWISAVER (Employer KiwiSaver payrule)
Create Super all Deductions from SuperFund < > KIWISAVER (Employee KiwiSaver payrule)

IMPORTANT:  As it is only KiwiSaver that IRD do not allow. If your organisation has other superannuation arrangements in-place, it would also be recommended to have separate payroll rules for KiwiSaver vs other types of funds.  For that, you would need to ensure either the Employee clause or the Qualifying clause:
Superfund. Has superfund of <Superfund code>

What if I don’t take the Release and my Payday submission fails what do I do?

You will need to complete the following steps to correct the pay:

1. Rollback the pay.

2. Remove the KiwiSaver transactions from the employee pay and deactivate the employee’s KiwiSaver fund. OR change the employees tax code (if applicable - make sure you check their latest IR330 if they are an employee and if didn’t give one, get them to complete one!).

3. Re-process the pay and complete all steps necessary when a pay is rolled back. These will differ per organisation.

4. Resend the Payday submission,

   1. If you are a Gateway submitter - go to the Payday Manager tool and send your “Reversal” obligation. More details on see Help Article 10781. Note: It is important that you do not reset the pay.

   2. If you are a FileUpload submitter - you will need to create a new EI file.