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Penalties for non-payment of employer monthly schedules 23 Dec 2010

The IRD has been reinforcing its position with employers not meeting their payment obligation. Non-payment penalties are issued by the IRD to employers who fail to pay their employer monthly schedule (EMS) obligations in full or on time.

A non-payment penalty is 10 % of the amount outstanding and applies when non-payment continues after the IRD issues a notification. A further 10 % penalty will be added each month the debt remains outstanding.

Employers experiencing financial difficulties are advised to contact the IRD before the due date to set up an instalment arrangement to avoid penalties. Once the amount outstanding has been paid in full, or an instalment arrangement has been set up, the last 10 % penalty will automatically be reduced to 5 %.

Employers are also reminded to file their EMS by the due date, or risk paying a late filing penalty of $250 for each schedule received late.

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