PAYE in New Zealand


In the country of New Zealand, every employer is required to make PAYE (pay as you earn) subtractions from the salary or wage of their employees and other payroll activities which are on record for the purpose of Inland Revenue. The Inland Revenue department of the New Zealand Government allows you to securely and conveniently make PAYE deductions with the help of ir-File online service. This online service helps you in completing the 2 key documents which are required, that is Employer deductions form (IR345) and your Employer monthly schedule (IR348) over the internet.

Why pay PAYE?

For a newly formed business or firm in New Zealand, making PAYE payments and filing in the documents can be a bit difficult for the employer to get a hand on the new responsibility. It is necessary for the employer to keep a firm grip on the payroll responsibilities, and paying PAYE is among the important aspects of the employer.

  1. The employer must properly understand the minimum pay entitlements for all the people under the employer’s payroll.
  2. The correct calculation of wages and salaries of employees must be calculated accurately by the employer.
  3. Records of all payroll activities and adjourning accounting activities must be closely monitored.
  4. The employer must make sure they make timely PAYE payments to the Inland Revenue Department of the Government of New Zealand to avoid late payment fees.

Making Payments and filing returns

How much PAYE (pay as you go) you paid the last financial year to the Inland Revenue department determines the time period and method for filing Employer deduction forms and EMS, and when you will have to pay the current year’s PAYE.

How to make changes or corrections to EMS

The Employer Monthly schedule is one of the important requirements for paying PAYE and thus it needs to be accurate. In case the employer makes an error in the entry of their EMS that has already been filed and submitted to the Inland Revenue Department, they can call the Inland Revenue Department on 0800377772 and make the changes on the phone or fill out the EMS amendments form (IR344) in order to make the required changes.

Intermediaries of Payroll

All business and firms that pay less than $500,000 annually in the ESCT (Employee Superannuation Tax) and PAYE (Pay as You Earn) can avail subsidy to outsource their employee payroll services. This subsidy is provided in the light to encourage the small and growing businesses and help them focus on improving their business and growing the economy. This also saves the employers of small businesses from time consuming paperwork processes which are swiftly done by outsourced payroll professionals.

The payroll intermediary is directly paid the sum $2 per payday per employee of the business as subsidy. 5 payroll employees can avail this subsidy by the Inland Revenue department to boost small blooming businesses.

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