Employers and deductions

Making deductions for child support

This section explains how child support deductions work, what child support deduction notices show and how to deal with them, and what happens if the deducted amount changes. It also clarifies that child support payments take priority over other deductions, and identifies the forms that you must complete.

See also common questions from employers about child support deductions.

How do child support deductions work?

We work out how much child support a paying parent should pay each month. If the paying parent is your employee, we may contact you for information such as:

• how often you pay wages
• the next regular payday or pay period for this employee
• whether you want an employee reference on the notice we send you.

Child support payments, like PAYE and other deductions, are due on the 20th of each month. For large employers, they are due on the 5th of each month as well.

Child support deduction notices

Once we have all the required details, we will send you a Child support deduction notice (CS503). This notice tells you to deduct child support payments from your employee's pay. It also shows:

• your employee's name and IRD number
• the payday or pay period when you must start deducting child support
• the amount to deduct from each pay
• an employee reference (if you provided this information).

Please do not make any deductions before the start of the notice. Contact us on freephone 0800 220 222 if you think any details on the deduction notices are incorrect.

Where possible, to help make your processing easier, we include all child support notices issued for the same payday or pay period in one envelope. We also send a copy of the notice to the employee.

You can choose whether to receive the deduction notices as:

• a consolidated deduction notice showing all additions and changes to child support payments made from your employees' pay
• an individual CS503 notice and a consolidated deduction notice in the same envelope.

Please contact us on freephone 0800 220 222 to let us know your preference.

What happens if the amount of the deduction changes?

If the amount to be deducted changes during the year, we send you another Child support deduction notice (CS503). It shows:

• the new amount to be deducted
• when you must start deducting the new amount.

Priority of child support deductions

Child support deductions have priority over any other deductions from an employee's pay. After deducting PAYE, you must deduct child support before you deduct anything else like:

• student loan repayments
• insurance
• superannuation
• union fees.

Note: Work and Income NZ collects some money owed under other schemes. If you are already making these deductions, continue doing so until Work and Income NZ contacts you. Pay these deductions directly to Work and Income NZ and not to Inland Revenue.

Forms and records

As an employer, you need to complete and return:

• Employer deductions (IR345) form, and
• Employer monthly schedule (IR348).

Both these forms must show the total child support amount deducted for the period. For assistance in completing these forms, see the Employers' guide (IR335), which is also available by calling our 0800 self-service line on 0800 257 773.

In addition, you must keep records of child support deducted along with your normal wage records.

 

Date published: 26 Jun 2008

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