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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.

Late filing and non-electronic filing penalties

By law you must file your tax returns on time. If you don't file your Employer monthly schedule (IR348) by the due date, you may have to pay a late filing penalty.

Late payment penalties

A payment is late if it is posted or delivered to Inland Revenue after the due date. Penalties are not charged on unpaid amounts less than $100.

Shortfall penalties

Shortfall penalties apply to certain offences, including failing to deduct PAYE or failing to pay PAYE deductions to Inland Revenue.

Failing to make deductions from payments to employees

As employers you are responsible for making various deductions, such as PAYE, ESCT (employer superannuation contribution tax) formerly SSCWT, student loans and child support and KiwiSaver, from your employees' gross wages. It is a serious matter if any employer does not properly deduct or pay employees' PAYE or other deductions.

Grace period

If this is your first late payment in a two-year period, (being the later of 1 April 2008 and the day 2 years before the default date and ending before the default date), you will be allowed a grace period. This means that you will have a further period to make payment. If you do not pay, the late payment penalty will be imposed from the due date. Interest will continue to apply.

Payroll giving

Employees who take part in payroll giving receive an immediate tax credit for their payroll donation reflected in their PAYE. The employer is responsible for passing the correct PAYE amount to Inland Revenue and advising us of the amount of the tax credits for payroll donation.

 

 


Date published: 16 Sep 2004

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