Paying Tax Deductions



Paying Tax Deductions to Inland Revenue
Find out about when you must make payments to Inland Revenue and how to use electronic payments through your bank. Electronic payments are a popular way of paying IRD. They are a convenient and easy way to pay on time without any worry.

Your payment will not be late as long as IRD receives it on or before the due date.

Other points include:

  • You must pay IRD all the deductions you make from your employees' wages by the due date. If the PAYE deduction 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 a small employer payments for PAYE, child support, student loan and SSCWT deductions are due on the 20th of the month following the month of the deduction.

  • For a large employer, payment for PAYE, CSE, SLE and SSCWT deductions from wages paid to employees between 1st and 15th of the month are due to by the 20th of the same moth. PAYE, CSE, SLE and SSCWT deductions from wages paid to employees between the 16th and the end of the month are due by the 5th of the following month.

  • Employers must deduct PAYE, SSCWT, student loan repayments or child support when required, from any payments made to employees. Failure to do this is a serious offence and can result in penalties and fines being imposed.

Example:

20 March 2005 is a Sunday, so the due date for payment is Monday 21 March 2005.

Large employers pay their PAYE and other deductions twice-monthly. Small employers pay once a month. Whether you are a large or small employer depends on your gross annual PAYE deductions. Gross annual PAYE deductions are the total PAYE deductions made, including any SSCWT deductions, but excluding earners' levy, student loan repayments and child support. A large employer has gross annual PAYE deductions of $100,000 or more.

IRD will send you an Employer deductions (IR345) form or for SSCWT employer deductions (IR 346) before the due date for each payment. Fill in this form with the details for the period, and send it in with your payment. Employers who file manual returns will also receive an Employer monthly schedule (IR348) each month.


Failing to Pay Deductions to Inland Revenue
Employers must pay deductions to Inland Revenue by each due date. The money deducted does not, at any stage, belong to employers. Under no circumstances should the deductions be used for any other purpose than for payment to Inland Revenue.

IRD will help employers who try to meet their responsibilities but will take action against employers who do not comply with the tax laws.

Failing to pay deductions to Inland Revenue is a serious offence and can result in prosecution.

An employer who is convicted may be:

  • fined up to $50,000 and/or
  • sent to prison for up to 5 years.

The name of anyone convicted will also appear in the New Zealand Gazette.
Note: The imprisonment penalty does not apply to SSCWT offences.



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Some content was obtained from the IRD and incl without change to ensure total accuracy and compliance with current law.