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Working for Families in-work tax credit | The government has announced a temporary increase of $50 a week to the in-work tax credit from 1 April. Find out more: In-work tax credit increase from 1 April

ACC will deduct PAYE from any loss of earnings compensation they pay to your employees.

Three situations can occur if you pay an employee who has been injured at work.

  • If an employee is injured at work and you pay them until they start receiving compensation, deduct PAYE using their tax code.
  • If you subsidise an employee who is receiving compensation, deduct PAYE from the extra payment you make using the secondary tax rates.
  • If you pay an injured employee's salary/wages and ACC reimburses you, deduct PAYE using the employee's tax code.
Last updated: 28 Apr 2021
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