Deductions from salaries and wages: PAYE deductions
Deducting income tax as PAYE
| Note | |
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| Personal income tax rates will be changing from 1 April 2009. For a summary of the changes see our News and updates article. | |
What are PAYE deductions?
PAYE (pay as you earn) is the tax you deduct from your employees' salary or wages, and pay to us on their behalf. It includes an ACC earners' levy.
PAYE deduction tables
In March each year we send you the PAYE deduction tables (IR340 and IR341) containing the current deduction rates. These show you how much to deduct from each employee's pay based on your employee's tax code.
New PAYE rates come into effect from 1 April 2009. This means you need to start using them to calculate the correct amount of PAYE to deduct from employees' salary and wages for pay periods ending on or after 1 April 2009.
| Note | |
|---|---|
| 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 calculator
You can go to Work it out > to:
- use the PAYE / KiwiSaver calculator and calculate tax deductions from an employee's gross wages
- work out how much PAYE you'll have to account for, if you have paid the employee a net amount.
There is a separate holiday pay 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
Date published: 13 Mar 2009
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