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PAYE (Pay As You Earn)

August 31, 2020

PAYE (Pay As You Earn) is a tax deducted by you from your employee’s salary or wages and paid directly to IRD on their behalf each month.  The rate of tax that you deduct is determined by the IR330 Tax Code Declaration form that each employee must complete when they start work (you must retain this form on their employee file).  If your employee does not complete an IR330 you must deduct tax at the “no-notification” rate (at the time of writing this rate is 45%).

PAYE returns and payment are due to the IRD by the 20th of the month following.  However, if your gross annual PAYE deductions are $500,000 or more you are required to pay PAYE twice a month as follows:

  • from wages paid between the 1st and 15th of the month by the 20th of the same month
  • from wages paid between the 16th and the end of the month by the 5th of the following month, except for the second period of December, which is due on 15 January

Also, if your annual PAYE deductions are over $50,000, the IRD will require you to file the PAYE returns on line.

For more information on PAYE please call us or alternatively refer to the IRD website

Payday Filing

You must file an employment information form every time you pay your employees which is based on the date you pay employees (pay day) which could be weekly, fortnightly, monthly or more frequently.  This is to ensure that IRD has the most up to date information possible on all employees pay and deductions.

For more information on payday filing please call us or alternatively refer to the IRD website https://www.ird.govt.nz/employing-staff/payday-filing

Author: Kirsty Bullen

Managing Director

Campbell Tyson Limited

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