Deductions from salaries and wages
There are tools available to help employers calculate PAYE and student loan repayment deductions. If child support deductions must be made, we will inform you of the amount. Employer superannuation contributions (ESCT), formerly specified superannuation contributions withholding tax (SSCWT), are subject to tax. Employers must also use the PAYE system to deduct employees' KiwiSaver contributions.
PAYE deductions
PAYE (pay as you earn) is the basic deduction made from an employees' wages. It includes an ACC earners' levy. PAYE deduction tables and an online calculator are tools to help calculate the amount to deduct.
Student loan payment deductions
Employees who earn above a threshold amount must make student loan repayments. Repayments are deducted from wages by the employer. An online calculator and PAYE deduction tables show how much to deduct.
Child support deductions
As an employer, you may need to make child support deductions from an employee's pay. If so, we will send you notice of the amount to deduct.
Superannuation fund contributions
Employer superannuation contributions (formerly specified superannuation contributions) are made by an employer for an employee's benefit. They are subject to tax (ESCT, formerly SSCWT) which may be deducted at one of three different rates. Employer superannuation contributions are different to any deductions that an employee asks an employer to make from their wages to a superannuation scheme.
KiwiSaver
From 1 July 2007 employers must deduct employees' KiwiSaver contributions from their before-tax pay using the PAYE system. All employers must make KiwiSaver available to new staff, unless the employer qualifies for an exemption from automatic enrolment.
Tax credits for payroll donations
Tax credits for payroll donations are calculated for each employee who makes a donation using payroll giving. The amount of the tax credit is 33 1/3 cents for each dollar donation. This is reflected in the reduced PAYE payable.
Date published: 16 Sep 2004
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