New Secondary Tax Code from 01 April 2010

From 01 April 2010 any employees using a secondary tax code that expect their income from all sources to be less than $14,000 per year,  can utilise the new tax code SB, this tax code deducts PAYE at a rate of 12.5%

Handling PAYE payments

We have been fielding a large number of calls lately and one common question seems to be how we handle PAYE payments as a number of bureaus are taking the Gross pay from their clients, hanging onto the money, and then paying the IRD when due.

Our preference is that you, the client, handles the payment of PAYE to the IRD directly.  This way you get to keep your money in your bank account and you decide when you pay it.  We provide you with all the reports you require.

However, we do have some clients who request us to pay the PAYE for them.  We can only provide this service if you are using us to process the DC file each pay as you must be setup on the ASB Payment Service we use.

In these cases we make a payment directly from your account to the IRD on the closest working day to when the payment is due.  If the payment falls on a weekend we will always make the payment the Friday before.

We do charge an additional $15 to process these payments for you.

Tax Rates in New Zealand

The PAYE for primary employment is

-  14.2 % on income up to $14,000, plus

- 22.7% on income over $14,000 up to $48,000, plus

- 34.7% on income over $48,000 up to $70,000, plus

- 39.7% on income over $70,000 up to $106,473.

Income over $106,473 is taxed at 38% as this is the maximum liable for ACC earners’ levy of 1.7%.

Can you pay the PAYE for us?

Yes we can ensure the payment for your PAYE is completed on time.   We need to be handling the DC file for you in order to do this.

We do charge a separate fee for this service.