PAYE Deductions on Salaries & Wages|
IRD - 20 January 2012
Employers must deduct PAYE, including tax on schedular payments (formerly
withholding payments) from payments made to staff or contractors. Deductions may also be needed for student loan
repayments, child support, KiwiSaver, or any benefits, bonuses or other allowances that you pay. The amount of PAYE
you deduct depends on your employee's tax code.
PAYE employees must complete a Tax code declaration (IR 330) as soon as they start working for you. If an employee fails to
complete the tax code declaration, you must deduct PAYE at the no-declaration rate.
Every month you must file an employer monthly schedule detailing each worker's gross earnings and deductions.
If you are a small employer with gross annual PAYE deductions of less than $500,000, the
schedule and payment are made on the 20th of the month following the deductions.
If you are a large employer with gross annual PAYE deductions of $500,000 or more, the
deductions made from payments made to workers between the:
- 1st and the 15th of the month are paid by the 20th of the same month.
- 16th and the end of the month are paid by the 5th of the following month (except for
December payment is to be made by 15 January). The employer monthly schedule is filed along with this
For more information regarding PAYE deductions and assistance with any queries you may have, please contact
All information is correct at the date of article
publication. Please note we provide the information as a service only. Accordingly, the contents are
not intended as a substitute for specific professional advice and should not be relied upon for that
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