Get the contractor's tax rate
If the contractor:
- has given you an IR330C form, use the tax rate shown
- has not given you an IR330C form, use the no-notification rate for their activity
- has a tailored tax rate certificate, use the tax rate shown.
Calculate the tax due
Multiply the contractor’s tax rate by their gross payment to find the tax to withhold.
Remember that you do not need to deduct student loan repayments, KiwiSaver deductions or ACC levies from schedular payments.
File the employment information
You do not need to tell us the contractor’s date of birth or contact details if you do not have them.
Filing on a payday basis
You need to file the employment information within 2 working days of the date of payment if filing electronically, or within 10 working days if filing by paper.
Filing twice a month
Schedular payments made between the:
- 1st and 15th of the month are treated as if they were made on the 15th of the month. For example, if an employer paid contractors on 1 February 2020, payday on the Employer Information is 15 February 2020.
- 16th and end of the month are treated as if they were made on the last day of the month. For example, if an employer paid contractors on 23 February 2020 payday on the Employer Information is 29 February 2020.
The date you file employment information about the schedular payment depends on whether you file your usual payday information electronically or by paper.
|File electronically||File by paper|
File information within 2 working days of:
File information within 10 working days of:
Pay the deduction
Pay us the withholding tax you deducted from contractor payments. This is due when you pay any PAYE you deducted from employees’ wages.