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Employer responsibilities
Ngā kaiwhakawhiwhi mahi takohanga

Overview


What's on this page

Introduction

When you employ staff you're responsible for deducting from their pay the correct amount of:

  • income tax (PAYE)
  • KiwiSaver contributions, if they're a member of KiwiSaver
  • child support payments, if they owe child support
  • student loan payments, if they have a student loan.

If any of your staff are members of KiwiSaver then you must pay your employers' contribution to their fund. This is a minimum of 3% of their annual pay.

Getting it right

A map of New Zealand with a tick next to it

Get your employer schedule in on time with your payment and avoid penalties.

Make sure the correct IRD number and tax code is next to each person's name.

Make sure you have entered the right amount for people's KiwiSaver, student loan or child support payments.

Tell us when someone stops working for you through you employer monthly schedule.

Filing electronically using ir-File is the most accurate and efficient way to send us your employee information.

What we are doing

  • We contact businesses who don't file their Employer monthly schedule (IR348) at all, or file them late, to help them comply. If they still don't comply we will take further action.
  • We send regular updates about common errors and set up seminars to help business fill in their Employer monthly schedule (IR348) accurately.
  • We work directly with new employers that have difficulty with their obligations to help them understand employer monthly schedule filing.
  • We check if the correct tax codes (for employees) or correct tax rates (for contractors) are being used.

Make sure new employees fill in a Tax code declaration (IR330)

This will tell you the:

  • tax code to use, and
  • rate of tax to take out of their wage.

If any employees don't fill in a Tax code declaration (IR330), you must deduct tax from their wages at a higher rate (called the no-notification rate).

Find out more about tax codes


Deduct PAYE from your employees' wages

You pay this to us either once or twice a month, depending on the total amount of wages you pay.

PAYE includes the ACC earners' levy, to cover the cost of employees' non-work injuries.

Employers who file their Employer monthly schedule (IR348) and Employer deductions (IR345) electronically through ir-File can offer their employees payroll giving. This scheme gives employees the opportunity to donate to approved donee organisations from their pay and receive an immediate tax credit.

Make any further deductions from employees' wages if required

Other deductions may be child support, student loan, or KiwiSaver contributions.

Find out more about deductions from salaries and wages


Make sure all contractors fill in a Tax rate notification for contractors (IR330C)

If you have a self-employed contractor working for you, you won't need to deduct PAYE, but may need to deduct tax.

The IR330C will tell you the rate of tax to be deducted - either the standard rate for their activity listed on the IR330C, or a rate chosen by the contractor. If the contractor hasn't chosen their own rate, use the standard rate.

If the contractor doesn't give you an IR330C or it's not completed, you must deduct tax from the payments made to them (called schedular payments) at a higher rate (called the no-notification rate).


Complete employer returns

  • Send the Employer deductions (IR345) with your payment by the due date.
  • Complete an Employer monthly schedule (IR348) with the details of each employee's deductions.

Find out more about filing returns and making payments


Pay fringe benefit tax if required

If you supply fringe benefits, eg company cars or parking spaces, to your employees, you will need to send us a fringe benefit tax payment by the due date and either a:

You can either download these forms or complete them online.

Find out more about payroll deductions