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Employer responsibilities
Ngā kaiwhakawhiwhi mahi takohanga
Deductions from salaries and wages: PAYE deductions

Deducting income tax as PAYE

What are PAYE deductions?

PAYE (pay as you earn) is deducted from your employees' salary or wages, and paid to us on their behalf. It includes income tax and ACC earners' levy.

The Weekly and fortnightly PAYE deduction tables (IR340) and Four-weekly and monthly PAYE deduction tables (IR341) are available online. These show you how much to deduct from each employee's pay based on your employee's tax code.

Getting it right

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Deduct student loan repayments from your employees' pay after deducting PAYE and child support.

If we identify your employee is using the wrong tax code, we'll write to you asking you to change it. We'll tell you which employees are using incorrect tax codes and let you know which code they should be on.

Use the PAYE/KiwiSaver deductions calculator

You can use the PAYE/KiwiSaver deductions calculator to calculate deductions from an employee's gross wages. You can also work out how much PAYE you'll have to account for if you have paid the employee a net amount.

There is a separate calculator to work out tax deductions on holiday pay.

Find out more

Correcting employee tax codes
Deducting student loan repayments
Using the tax code declaration
Primary employment tax codes
Secondary employment