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2006 media releases

PAYE Subsidy available for employers
29 September 2006

From 1 October, many employers will be able to claim a subsidy designed to help simplify their tax obligations and cut compliance costs.

Most employers who use a payroll intermediary to help prepare their wage records will be eligible for a subsidy of $2 per pay day, per employee (up to a maximum of five employees). Businesses that file monthly and have total PAYE deductions of less than $100,000 per year will be eligible for the subsidy, which is paid directly to the payroll intermediary.

A payroll intermediary can be a payroll service provider, accountant or other tax professional who provides payroll services and is registered as an intermediary with Inland Revenue.

"The cost of using a payroll agent will vary, of course, but the subsidy should go a long way towards meeting the cost for small employers," says Ross Hughson, Inland Revenue's Acting Deputy Commissioner Business Development & Systems.

Up to 71% of New Zealand employers may qualify to receive the subsidy for all their employees and a further 22% could receive the subsidy for some of their employees.

Employers should check with their payroll intermediaries to see if they are registered with Inland Revenue to receive the subsidy.  Payroll service providers can be found in the yellow pages or at www.yellowpages.co.nz [search for payroll services].

 

For further information contact:

Sharon Cuzens

04 890 1930

 

Corporate Communications
Inland Revenue

For all media enquiries phone: 04 890 1698

For general communications enquiries
Phone: (04) 890 1936
Email: corpcomm@ird.govt.nz
Fax: (04) 498 5809

P O Box 2198
12-22 Hawkestone Street
Wellington
New Zealand

  

Date published: 29 Sep 2006

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