The Tool for business
The Tool for business helps you get all your small business tax issues sorted quickly and simply.
Becoming an employer
When you start employing staff, you must register with us as an employer. You must also decide whether your staff are employees or self-employed contractors as the tax treatment for each is different.
Employing staff
There are things you must do or check when a staff member starts or stops working for you, when your business changes or ceases or if you want to employ your spouse or any foreign workers.
Payroll
Employers must deduct PAYE, including tax on schedular payments (formerly withholding payments) from payments made to staff or contractors. Deductions may also be needed for student loan repayments, child support, Kiwisaver, or any benefits, bonuses or other allowances that you pay.
Keeping records
This section has information about which records of your PAYE deductions you need to keep, and for how long.
Filing returns and making payments
Filing and payment responsibilities for salary and wage deductions differ depending on your gross annual PAYE payments. Employers with gross annual PAYE of $100,000 or more must file their Employer monthly schedules (IR348) electronically using ir-File. This option is also available to employers with gross annual PAYE of less than $100,000.
Employers with gross annual PAYE of less than $500,000 must file an Employer monthly schedule (IR348) and Employer deductions (IR345) form, and make payments to us once a month.
Employers with gross annual PAYE of $500,000 or more must file an Employer monthly schedule (IR348) once a month and file Employer deduction (IR345) forms and make payments to us twice a month.
Any employer may use a PAYE intermediary.
Failing to meet your employer obligations
If you fail to meet any of your obligations as an employer you may be liable for penalties and interest.
For payroll software developers
Technical specifications for payroll deductions, non-resident withholding tax and resident withholding tax are available for payroll software developers.
Did you know?
ir-File is a secure online service for employers to file monthly schedules (IR348) and deductions (IR345) forms. You can also use the KiwiSaver details to file KiwiSaver employee details (KS1) forms and new employee opt out request (KS10) forms. You need to register to use this service. Find out more about ir-File.
Date published: 04 Oct 2004
Back to top
