Running a business: Accounting for employer-related taxes
Paying deductions to Inland Revenue
You must pay us all the deductions you make from your employees' wages by the due date. If the PAYE due date for payment falls on a Saturday, Sunday, or public holiday, you can make your payment on the next working day without penalty.
For employers with gross annual PAYE of less than $500,000
Payments for PAYE, child support, student loan and ESCT (formerly SSCWT) deductions are due on the 20th of the month following the month they were deducted.
For employers with gross annual PAYE of $500,000 or more
Payments for PAYE, CSE, SLE and ESCT deductions from wages paid to employees between 1st and 15th of the month are due by the 20th of the same month.PAYE, CSE, SLE and ESCT deductions from wages paid to employees between the 16th and the end of the month are due by the 5th of the following month.
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Whether you pay deductions of Inland Revenue once or twice per month depends on your gross annual PAYE. Gross annual PAYE is the total PAYE made, including any ESCT deductions, but excluding earners' levy, student loan repayments and child support. Employers with gross annual PAYE of less than $500,000 pay deductions to Inland Revenue twice per month. In this case, PAYE from wages paid to employees in August 2009 will be due by the 20th of September 2009. However, as 20th September 2009 is a Sunday, you can make your payment on the 21st of September 2009 without penalty. Employers with gross annual PAYE of $500,000 or more pay deductions to Inland Revenue twice per month. In this case, PAYE deducted from wages paid to employees between 1st and 15th of August 2009 will be due by the 20th of August 2009. PAYE deducted from wages paid to employees between the 16th and the end of August 2009 will be due by the 5th of September 2009. However, as 5th September 2009 is a Saturday, you can make your payment on the 7th of September 2009 without penalty. |
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Paying the deductions
You will need to complete an Employer deductions (IR345/EDF) form before the due date for each payment. Fill in this form with the details for the period, and send it with your payment or file electronically using ir-File.
Employers who file manual returns will also receive an Employer monthly schedule (IR348) each month.
Date published: 30 Mar 2010
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