The end of the cheque payment as we know it

Inland Revenue (IR) and the Accident Compensation Corporation (ACC) are calling ‘time’ on cheques as part of the governments’ voyage into the digital age

From March next year, IR and the ACC will no longer accept payments by cheque from customers who are able to use alternative payment options.

Inland Revenue Deputy Commissioner Sharon Thompson says New Zealanders are already embracing the digital world and IR wants to do everything it can to help customers switch seamlessly to cheque alternatives. “Cheques are part of a paper-based world and don’t mesh with the increasingly digital world we now operate in. The number of cheques being used is spiralling down and will continue to trend that way. Electronic payments are simpler, easier and safer,” Sharon Thompson says. “IR already has a number of alternative ways for people to pay their tax bill. We want to help as many as possible shift to those before the technology used to process cheques comes to the end of its working life next year.

From 1 March 2020, IR and the ACC won’t process any cheques if customers have an alternative payment option available, the IR will also not be accepting post-dated cheques dated 1 March or later.

Both the IR and the ACC will be supporting customers to transition to alternative payment methods, whether that be face to face, over the phone or with written material.

IR- Options for payment:

  1. Electronic via internet banking or direct debit in MyIR. Paying this way minimises delays and includes a formal notification of the date and time the payment was made to Inland Revenue
  2. Customers can make payment by debit/credit card over the phone, through the unauthenticated payment page on the Inland Revenue website, and through myIR. (Convenience fee of 1.42% will be charged)
  3. Cash or eftpos are still payment options but only at Westpac branches. Payment not accepted at Inland Revenue offices
  4. If you require assistance or training to make online payments to the IRD, please call us to arrange.
  5. If you require internet access to make a payment at any stage, please call into the office so we can assist you.

If option three is your preferred payment method, IR has further requirements that will take effect as of 1 July 2020 in relation to payments made at any Westpac Branch which is as follows:

As of 1 July 2020, all payments at Westpac must be accompanied by a barcode. The barcode is a more reliable way of passing your details to Westpac and will prevent your payment going to the wrong place in the account, or potentially even the wrong person’s account. 

IR are adding barcodes to notifications where they’re requesting you to make a payment. If you misplace your barcode, you can generate one using the barcode generator on their website

You will need your IRD number, the tax type and the period of the payment. You can then either print it off or show it to Westpac staff on your smartphone. 

Link for specific details in relation to payment options to IR below:

https://www.classic.ird.govt.nz/campaigns/2019/cheques/cheques.html

ACC – Options for payment:

  1. MyACC for Business is the ACC online portal which makes it easy for business customers to set up and manage their payments
  2. Pay online on the ACC website by a Credit card (Convenience fee of 1.9% will be charged)
  3. Electronic via Internet banking
  4. Direct debit – can be set using MyACC for Business or by filling out the appropriate ACC Direct Debit form – Instalments of 3, 6 or 10 months – this payment option includes a 5.4% admin fee
  5. Cash or eftpos payments are available only at Westpac branches. Payment not accepted at ACC offices
  6. If you require assistance or training to make online payments to the ACC, please call us to arrange.
  7. If you require internet access to make a payment at any stage, please call into the office so we can assist you.

Link for specific details in relation to payment options to ACC below:

https://www.acc.co.nz/for-business/paying-levies/ways-to-pay-levies/

Please contact us so we may help you set up the most appropriate payment option for you.

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