Becoming an employer: Overview of responsibilities

Overview

Introduction

As well as a brief description of the main tasks you will have to do once you've registered as an employer, there is a link to the section that covers the topics in more detail.

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

This will tell you:

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

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

See 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 EMS (IR348) and EDF (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.

See Deductions from salaries and wages >

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.

See Filing returns and making payments >

Pay fringe benefit tax if required

If you supply fringe benefits (perks) to your employees, you will need to send us a fringe benefit tax payment by the due date and either a:

• Fringe benefit tax quarterly return (IR420), or
• Fringe benefit tax income year return (IR421), or
• Fringe benefit tax annual return (IR422).

You can either download these forms or complete them online.

See Making payroll deductions >

Make any further deductions from employees' wages if required

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

See Deductions from salaries and wages >

Date published: 06 Oct 2009

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