Employer's guide

IR335

October 2020

Employer's guide

Information to help you with your

responsibilities as an employer

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Introduction

If you have anyone working for you, it's your

responsibility to deduct tax and other amounts

from payments you make to them, as well as giving

information to us. We explain what you're required to

do and what happens if you don't comply.

If you haven't yet registered as an employer, read

our First-time employer's guide - IR333. It tells

you what you need to know before you register as

an employer.

If you need help with any of your employer

responsibilities, or you have questions about

anything in this guide, please call us on

0800 377 772.

Work permits

If you're thinking of hiring someone from overseas,

they may need a work permit. Only citizens and

permanent residents of New Zealand and Australia

may work in New Zealand without one.

Note: In some cases a visitor or student permit or other

entitlement may allow employment in New Zealand.

For more information about this and work permits

please go to t.nz or call the

New Zealand Immigration Service on 0508 558 855.

t.nz

Go to our website for information and to use our

services and tools.

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Log in or register for myIR - manage your tax

and entitlements online.

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Calculators and tools - use our calculators,

worksheets and tools, for example, to check

your tax code, find filing and payment dates,

calculate your student loan repayment.

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Forms and guides - download our forms and

guides.

Forgotten your user ID or password?

Request these online from the myIR login screen

and we'll send them to the email address we hold

for you.

How to get our forms and guides

You can get copies of our forms and guides at

t.nz/forms-guides

Changes to note

From 1 April 2020:

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The ACC maximum earnings on which ACC

earners' levy is charged has increased to

$130,911

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The Student Loan repayment threshold has

increased to $20,020.

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The payroll subsidy when using a payroll

intermediary has been removed.

The following changes came into effect 1 April 2019:

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file employment information with your normal

pay cycle

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provide new employees' address information, as

well as their date of birth - if they have provided

it to you, and

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file electronically (from payday compatible

software or through myIR) if your annual PAYE

& ESCT is $50,000 or more

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The ACC maximum earnings on which ACC

earners' levy is charged increased to $128,470.

The information in this guide is based on current tax laws at the time of printing.

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How to use this guide

Part 1 - Your responsibilities as

an employer

An explanation of your day-to-day responsibilities,

what is an employee, and what you may have to

deduct from your employees' wages.

Part 2 - Record keeping and

making payments

Learn what records you need to keep, how often

to make payments to us, the forms you need to

complete, and what to do if you stop employing

staff.

Part 3 - Other payments

Employers may make payments to their workers

other than normal wages. Find out about the tax

treatment of these other types of payments.

Part 4 - Penalties

Learn what the penalties and charges are if you fail

to meet your tax responsibilities.

Part 5 - Special types of workers

Find out how to deduct tax from the payments you

make to special types of workers.

Part 6 - Services you may need

Our services, contact details and other useful

information.

EMPLOYER¡¯S GUIDE

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Contents

Part 1 - Your responsibilities

as an employer

Who is an employee?

Minimum employment rights and obligations

Amounts you'll need to deduct

Deducting PAYE

Tax codes

Non-notified rate

Tailored tax codes and student loan special

deduction rate certificates

Schedular payments

If a worker has a Certificate of exemption

- IR331

ACC earners' levy

KiwiSaver

Student loan deductions

Child support deductions

Deducting employees' arrears

Payroll giving

Employer's superannuation cash

contribution (employer contribution) and ESCT

Part 3 - Other payments

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Part 2 - Record keeping and

making payments

Records you need to keep

PAYE intermediaries

Manual record keeping

Paying PAYE to Inland Revenue

New employee details - IR346

Completing the Employment information

- IR348

Child support codes

Correcting your IR348 after it's been filed

Electronic filing (myIR)

How to pay your deductions

When an employee stops working for you

If you've ceased or are about to cease

providing fringe benefits

If you cease to employ staff

If you've ceased or are about to cease business

Running totals

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Allowances

Lump sums (extra pays)

Regular bonuses

Holiday pay

Loss of earnings compensation paid by ACC

Honoraria

Payments to school trustees

Life insurance and personal accident

premiums

Prize money paid at sporting events

and competitions

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Part 4 - Penalties

Late filing penalty

Interest

Late payment penalties

Non-electronic filing penalty

Shortfall penalties

Non-payment of employer deductions

Failing to make deductions

Failing to pay deductions

Evasion

Additional student loan penalties

Additional child support penalties

Prejudice

Employee start and finish information

penalties

Audit procedures

If you disagree

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EMPLOYER¡¯S GUIDE

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Part 5 - Special types of workers

Casual agricultural workers

Commission agents

Directors

Drovers and musterers

Election-day workers

Fishers

Foreign fishing workers

IR56 taxpayers

Jockeys and trotting drivers

Musicians, dance bands and orchestras

Non-residents

Partners in a partnership

Piece-workers and outworkers

Recognised seasonal workers

Television and screen production

industry workers

Shareholder-employees in close companies

Shearers, shedhands and shearing contractors

Spouses or partners

Subsidised workers

Workers engaged in "activity in the

community" projects

Workers under labour-only contracts

in the building industry

Working owners in a look-through company

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Part 6 - Services you may need

Need to speak with us?

0800 self-service numbers

How to get our child support forms and guides

Voice ID

Supporting businesses in our community

Business Tax Update

Tax Information Bulletin (TIB)

Privacy

If you have a complaint about our service

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