Issue 54 July 2003 (Payroll News)

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Payroll News - 2003

Issue 54 July 2003

student loans deduction obligations for employers
do you use ir-File?
does your employer monthly schedule balance with your payments each month?
tax due date calculator

Student loan deduction obligations for employers

Employees with student loans only have to make repayments if they earn over $ 15,964.

When a borrower expects to earn over this amount, it is their responsibility to advise their employer by completing a Tax code declaration (IR330) form with the correct tax code for their situation (eg M SL for main employment, S SL, SH SL or ST SL for secondary employment). Employers are then required to deduct loan repayments from the employee's wages, based on the corresponding details in the PAYE deduction tables.

These loan repayment deductions are paid to Inland Revenue, along with the employee's PAYE deductions.

It is not an employer's responsibility to deduct repayments if employees have not given them a student loan tax code.

However, if you know that an employee has a student loan and may be liable for loan repayments, but they haven't given you a student loan tax code, you may wish to give them some information about their situation or direct them to our website www.ird.govt.nz

Do you use ir-File?

ir-File is a system which enables employers to send their employer monthly schedules electronically to Inland Revenue through the internet using our website www.ird.govt.nz. The schedules can be created by completing an onscreen form similar to the printed form, or schedules can be created directly from existing data in compatible payroll software programs.

The benefits of using ir-File are:

It's secure
It's accurate. The system helps to detect any errors in the schedule. It comes up with an error message which is simple to understand and you can use the online edit function to correct any mistakes before the schedule is sent.
It reduces the paperwork you need to store. Copies of the schedule can be stored electronically.
Help screens are available on the page you are working on, which is very handy.
It reduces the time it takes you to complete and file an employer monthly schedule.

All you need to use ir-File is a computer that can connect to the internet, an internet browser (Internet Explorer 5.1 or higher or Netscape Navigator 6.2 or higher) and an email address.

Visit our website to find out more about ir-File, including an interactive demonstration.

Does your employer monthly schedule balance with your payments each month?

When you complete yourEmployer monthly schedule (IR 348), please remember to make sure the sum of all the deductions on the schedule equals the payment you send us with your IR 345 or IR 346. Some employers are paying more each month than is shown on the schedule and this could mean the information included on the schedule is not complete.

To avoid the need for rework on previous months' schedules, please ensure your business has a process to reconcile your payments to your schedule every month, before you send the schedule to us.

Tax due date calculator

Did you know that we have an online calculator you can use to produce a list of all the tax filing and payment dates that may apply to you? This is a handy reminder and will help you plan ahead for future due dates.

Your due dates will be calculated based on the information you enter. If you want to know the due date for only some tax types, or some tax types don't apply to you, leave them set at "No" or "Neither of the above" and they will be missed out.

For this service, simply access our website under "online services", click on to our link for "Calculators", and then click on to "Due dates"