myIR, payments and more
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, and
- 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.
What's on this page
- Make sure new employees fill in a Tax code declaration (IR330)
- Deduct PAYE from your employee's wages
- Make sure all contractors fill in a Tax rate notification for contractors (IR330C)
- Complete employer returns
- Pay fringe benefit tax if required
This will tell you the tax code to use on their wage.
If any employees don't fill in a Tax code declaration (IR330), you must deduct tax from their wages at 45 cents in the dollar (called the no-notification rate or non-notified rate if payday filing).
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, or their Employment information schedules in myIR, 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.
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. If the contractor hasn't chosen their own rate, use the standard rate.
If the contractor doesn't give you an IR330C or the required information is not provided, you must deduct tax from the payments made to them (called schedular payments) at the no-notification rate or non-notified rate for payday filers.
- Send the Employer deductions (IR345) with your payment by the due date.
- Complete an Employer monthly schedule (IR348) or Employment information schedule with the details of each employee's deductions.
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:
- 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.