Pay As You Earn (PAYE) is the basic tax taken out of your employees' salary or wages. The amount of PAYE you deduct depends on each employee's tax code.
PAYE employees must complete a Tax code declaration (IR 330) as soon as they start working for you. If an employee fails to complete the tax code declaration, you must deduct PAYE at the no-declaration rate.
Employers must also file an employer monthly schedule with IRD detailing each worker's gross earnings and deductions. Employers with gross annual PAYE of $100,000 or more must file this schedule electronically with IRD using IRD's IR File system.
If you are a 'small employer' with gross annual PAYE deductions of up to $500,000, payments are made to IRD on the 20th of the month following the deductions. The employer monthly schedule must also be filed by the 20th of that month
For more information regarding PAYE or to register as an Employer either call us or visit the IRD website
A new system called payday filing is being introduced for the way businesses report payroll information. From 1 April 2018, employers may opt into payday filing. From 1 April 2019, payday filing is mandatory.
From 1 April 2019 employers must:
Note: The due date for payment remains the same at the 20th of the month (or 5th and 20th of the month for twice-monthly filers).
Contact us for more information or visit the IRD website.