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Tax Facts - PAYE on Salaries and Wages

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.

Payday filing was introduced for the way businesses report payroll information and became compulsory in 2019.

Employers must:

  • File employment information within 2 working days after every payday instead of an Employer monthly schedule (IR348)
  • Provide new and departing employees' address information, as well as their date of birth - if they have provided it to you
  • File electronically (from payday compatible software or through myIR) if your annual PAYE/ESCT is $50,000 or more.

If you are a 'small employer' with gross annual PAYE deductions of up to $500,000, you make payments to Inland Revenue on the 20th of the month following the deductions, although you can choose to pay more often. 

If you are a 'large employer' with gross annual PAYE deductions over $500,000, you need to pay deductions twice a month although you can choose to pay more often.

For more information regarding PAYE or to register as an Employer either call us or visit the IRD website.

Supplied by CCH Business Fitness NZ

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Roberts Tree Surgeons Ltd

Paul and Kelly Roberts started their business Roberts Tree Surgeons from scratch 12 years ago. Today the company is a strong team of 10 full time staff. Roberts Tree Surgeons are the one-stop shop for tree removal, tree maintenance and tree planting.

The majority of their work is tree and garden maintenance of private clients and large infrastructure clients...

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Callum Thompson

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Audit Manager

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What our clients say...

  • Parihohonu Station has been involved with Graham and Dobson since the early 1900s. They have proved to be of great value, producing a high standard of quality work, are trustworthy, astute, and approachable any time at all. The staff are very friendly and will bend over backwards for us. We always recommend this long established firm unequivocally.

    Avianne and Nigel Faram

  • We are grateful for the enormous amount of support the staff of Graham & Dobson provide. They have demonstrated a high level of understanding, knowledge and financial direction and deliver a consistent service in structured, efficient timeframes. This is a company with high integrity and strong values focusing on providing the utmost levels of customer satisfaction.

    Gisborne Stroke Support Group Inc.

  • Graham & Dobson helped me start my own business in 2007. Without their help and support the process would have been a lot harder. They offer excellent on-going support and advice.

    Karl Platten - Lawns Plus Ltd (GreenAcres)