myIR, payments and more
As an employer, you're responsible for calculating and deducting income tax and ACC earners' levy from your employees' salary or wages each pay period and sending these deductions to us on their behalf. This is known as PAYE (pay as you earn).
If you have employees, you need to:
- Register with us as an employer
- Get your employee's tax code and KiwiSaver information
- All your employees must give you their tax code on a completed Tax code declaration (IR330) form. Their tax code tells you what deductions you need to make from their salary or wage.
- If they're KiwiSaver members they'll also need to give you their KiwiSaver deduction form (KS2) or a contribution holiday letter.
- If they're not KiwiSaver members you need to give them Your introduction to KiwiSaver - employee information (KS3).
- Work out and deduct PAYE each pay period
- You must work out and deduct PAYE from your employees' salary or wage each pay period.
- Some employees need additional deductions like child support, student loan repayments and KiwiSaver contributions. You can work out these deductions with our PAYE deductions calculator.
- File returns and pay deductions to Inland Revenue
- Keep records
You need to keep records of all your PAYE deductions for at least seven years.
If you're not using payroll software, you can calculate PAYE and other deductions with our calculator or use the tables in our guides:
- PAYE/KiwiSaver deductions calculator
- Weekly and fortnightly PAYE deduction tables (IR340)
- Four-weekly and monthly PAYE deduction tables (IR341)
Both the calculator and the tables will help you work out standard PAYE (income tax and ACC earners' levy), KiwiSaver, and student loan repayment deductions.
Find out more about some situations that require different calculations:
- PAYE on holiday pay
- lump sum payments such as redundancy and back pay
- deductions for contractors
- special tax codes
- special rates for student loan deductions
- extra deductions for a student loan
- payroll giving.
The calculator can also work out a gross salary (the total salary before deductions) based on take home pay (the amount paid after deductions)
You can also find out about:
Deducting child support payments from wages
If any of your employees need to have child support payments deducted from their wages, we'll send you a letter telling you how much to deduct. You can enter this amount into the PAYE deductions calculator and it will factor the deduction in.
Each month you need to send us two returns:
- an Employer deductions (IR345) to record and pay deductions from your employee's pay
- an Employer monthly schedule (IR348) for the pay details of your employees.
Most employer returns need to be filed by 20th of the following month. Payment is due on the same date. You can file returns and pay deductions online through ir-File.
You must file online if you have gross annual PAYE (including employer superannuation contribution tax) of $100,000 or more.
When to pay PAYE
You can check when to pay your deductions by using our Tax due date calculator.
Different rules apply to employers with:
If you make a mistake in your return
To correct a mistake in your employer monthly schedule after it has been filed, please fill in an Employer monthly schedule amendments (IR344) form.
You can outsource your payroll to a PAYE intermediary. They will do the job for you and work with us on your behalf.
If you pay less than $500,000 a year in PAYE and ESCT (employer superannuation contribution tax) and use a PAYE intermediary, you may qualify for a subsidy.