Issue 51 April 2003 (Payroll News)

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Payroll News - 2003

Issue 51 April 2003

updated IR 330 tax code declaration forms
our business hours for phone enquires
PAYE calculator
2004 tax tables
a reminder about certificates of exemption
due dates over Easter

Updated IR330 tax code declaration forms

From 1 April 2003 we introduced a new version of the Tax code declaration (IR330) form.

We sent a supply of the updated forms to you, or your tax agent, in mid-March. If you need more copies you can order then through INFOexpress on 0800 257 773 or print them from ourwebsite. You'll need your IRD number and the form number (IR330).

Please dispose of any unused stock of the previous (January 2000) version of the form.

Our business hours for phone enquiries

Just a reminder that you can call us toll-free during our business hours which are 8am - 8pm weekdays and 9am - 1pm on Saturdays.

Business customers can contact specially trained staff directly on these number:

Employers	0800 377 772
GST	0800 377 776
Income tax and general enquiries	0800 377 774
Overdue tax and returns	0800 377 771

Our busiest time is between 9am and midday. Monday is the most popular day for enquiries.

Please note that free calling does not apply to cellular calls.

We randomly record calls made to Inland Revenue to monitor and improve the quality of our customer service. Please note that we store these recordings securely for a limited time and destroy them after use.

PAYE calculator

Did you know we have an online calculator that you can use to work out how much PAYE to deduct form your employee's earnings. It will work out how much PAYE to deduct from wages paid weekly, fortnightly, four weekly or monthly. The calculator will also work out any student loan repayments.

If you've already paid your employee a cash amount, you can use it to work out how much PAYE you'll have to account for on the amount paid. This will also tell you the gross figure for the net (cash) amount paid to your employee.

You can use the online calculator instead of the paperbased tax tables we send you. If you want to stop receiving the paper based tax tables, please let us know.

To get to this service follow the links from "Online services" to "Calculators" to "PAYE tax deductions".

2004 tax tables

By now you should have received your PAYE deduction tables for the year ending 31 March 2004. The rates in these tables apply from 1 April 2003. These tables are to be used for pay periods ending on or after 1 April 2003. If you have not received your tables, please phone us on 0800 257 773 to order copies.

A reminder about certificates of exemption

We'd like to remid you of your obligations as an employer if a worker supplies you with a Certificate of exemption (IR331).

People who are in business for themselves, and who are subject to withholding tax, can apply to us for a certificate of exemption. If a worker has a certificate of exemption, you can make payments to them without deducting withholding tax. The certificate cannot be used to exempt an employee's salary or wages from PAYE deductions.

Certificates of exemption are issued for one year only and must be renewed by 1 April each year.

Checking an IR331

Please check the following points carefully:

When you are shown a certificate of exemption,you must check that it is valid and current.

The work the person is doing for you must be the same as the work shown on the certificate. For example, if the certificate gives an exemption for freelance journalism income and you hire the person as a theatre prompt, the payments you make are not exempt.

If the certificate is valid, do not deduct withholding tax from payments you make to the holder. You do not need to include tax exempt payments on your Employer monthly schedule (IR 348). You must, however, keep a record of these payments.

If the certificate is not valid or current, the worker must complete a Tax code declaration (IR330) and you must deduct withholding tax from payments you make to them.

It is a good idea to keep a record of the certificate of exemption number, or even a photocopy of the original, in case we need to review your records. You'll find the number at the bottom right-hand corner of the certificate. For information about certificates of exemption phone us on 0800 377 772.

Due dates over Easter

As 20 April 2003 falls on a weekend (Sunday) and the following day is a holiday (Easter Monday), your Employer monthly schedule (IR348) and/or Employer deductions (IR345) or (IR346) from and payment are now due on 22 April 2003.