PAYE on Salaries and Wages 

 Pay As You Earn (PAYE) is the basic tax taken from your weekly, fortnightly or monthly wages.  The amount deducted depends on each employee’s tax code. 

Employees are required to complete a Tax code declaration (IR330)  as soon as they start work, otherwise PAYE must be deducted at the no-declaration rate which is currently 46.7 cents in the dollar.

Employers must complete each month, and forward to the Inland Revenue Department (IRD), an employer monthly schedule , giving details of all employees gross earnings, PAYE and KiwiSaver deductions.    All employers can file these schedules electronically but if your gross annual PAYE is $100,000 or more, you MUST file the returns electronically using the IRD’s IR File system. 

If you’re annual PAYE deductions are up to $500,000 a year, you must make your PAYE payment and file your monthly return by the 20th of the month following the deductions.

If you’re gross annual PAYE deductions are over $500,000 a year, you must file your monthly schedule by the 5th of the month following  the deductions, and payments are made as follows:-

v  All payments made to employees between the 1st and the 15th of the month are paid by the 20th of the same month;

v  Payments made from the 16th to the end of the month are paid by the 5th of the following month (except for December when the payment is made by the 15th January).

For more information regarding PAYE or to register as an Employer, please give us a call or visit the IRD website.

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