Issue 50 February 2003 (Payroll News)

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Payroll News - 2003

Issue 50 February 2003

updated IR 330 tax code declaration forms
notice to deduct amounts owed to Inland Revenue
ir-File user update
2004 tax tables

Updated IR 330 tax code declaration forms

From 1 April 2003 a new version of the Tax code declaration form (IR330) will be introduced. We have made changes to the form to make it easier for employees to choose the right tax code. This is as a result of feedback received from employers and employees indicating that some people found the old form difficult to follow and led to some employees choosing the wrong tax code. Also, a recent law change means that a statement to say an employee is legally entitled to work in New Zealand has been included on the form.

Only new employees or existing employees who want to change their tax code need to complete the form. We'll be sending a supply of the updated forms to you in mid-March 2003. The updated form will be sent from 1 March 2003 for requests made through INFOexpress.

Notice to deduct amounts owed to Inland Revenue

From time to time Inland Revenue may require you to deduct an amount (for overdue tax) from your employee's wages. This will usually be for employees who haven't made arrangements for payment of these outstanding amounts.

If we require you to deduct these extra amounts we will send you a notice advising you of this and telling you what to do. If you receive one of these notices you are legally obliged to make the extra deductions as shown.

These extra deductions are in addition to the usual PAYE and other deductions you make from the employee's pay, and are payable to us by the end of each calendar month.

Do not include these extra deductions for your Employer monthly schedule (IR348) or use the Employer deductions (IR345) or (IR346) forms to pay them. Instead, complete the payment slip at the bottom of the notice and send to us with the payment. Please do not send cash.

The extra deductions must continue until:

the total amount owing has been deducted and paid to Inland Revenue, or
you receive a notice from Inland Revenue telling you to stop making the deductions, or
the employee stops working for you. (You will need to advise us of the employee's finish date straightaway).

If you require any further assistance, please contact us on the telephone number at the top of the deduction notice.

ir-File user update

Her are a couple of reminders for those of you who send your employer monthly schedules to us using the ir-File system...

Auto-deletion process

In early February, we will be running a program to delete any records (schedules, receipts or error reports) in your workspace that are older than six months. This will occur regardless of whether or not your have previously saved these records.

The records will be automatically moved to your "trash bin" where they will remain for 30 days before being permanently deleted from ir-File. We suggest that before this happens, you save any records you wish to keep to your computer. Further information about how to save records and about the auto-deletion process is available on the ir-File homepage.

Checking for receipts

After you have sent your employer monthly schedule using ir-File, you will see a message box that confirms that your schedule has been sent successfully. The message prompts you to check your workspace for a receipt.

It is important that you check for a receipt in your workspace to ensure that we have successfully received your schedule. If there are any errors, you will get an error report in your workspace.

If there is no receipt or error report in your workspace, then the schedule hasn't been received by us successfully and you will need to resend it.

2004 tax tables

Your PAYE deduction tables for the year ending 31 March 2004 will be posted to you in early March. The rates in these tables will apply from 1 April 2003.