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Running a business: Keeping records

Keeping a wage book

Here are some tips to help you keep a wage book:

  • Start a new page in your wage book as soon as an employee starts work with you, or at the beginning of each tax year. Make sure they give you the personal details you need.
  • Keep a separate page for each employee, even if they were only employed for one day.
  • Complete all these wage details each payday:
    • total gross earnings, including taxable allowances (the amount before PAYE is deducted)
    • the amount of PAYE deducted (taking into account any tax credits for payroll giving donations)
    • any payroll giving donations and tax credits for them
    • any child support allowances
    • any student loan repayments
    • any KiwiSaver employee deductions
    • any KiwiSaver employer contributions (gross)
    • any net KiwiSaver employer contributions
    • any ESCT (formerly SSCWT)
    • the value of tax-free reimbursing allowances.
  • Summarise the details for each employee at the end of each deduction payment period. This will be either twice-monthly or monthly, depending on your yearly PAYE deducted.
  • Keep a summary sheet that shows, for each period, the following totals:
    • gross wages
    • PAYE deducted (taking into account any tax credits for payroll giving donations)
    • any payroll giving donations and tax credits for them
    • child support allowances
    • student loan repayments
    • KiwiSaver employee deductions
    • net KiwiSaver employer contributions, and
    • ESCT
Note  
Tax credits for payroll donations are created for each employee who makes a donation using payroll giving. These tax credits are 33.33 cents for each dollar donated.

Find out more about payroll giving.

 

The information in your wage book will help you fill in each Employer deductions (IR345) form and the Employer monthly schedule (IR348).

Illustration of a wage book

Click on the image below to get the full size view:

Snapshot of wagebook illustration

Larger version of image

 

 


Date published: 28 Mar 2013

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