PAYE/Withholding Tax

Pay As You Earn (PAYE) is deducted from the wages and salaries paid to employees and is in turn paid over to IRD  monthly (or twice a month for employers with PAYE deductions that in the previous year exceeding $500,000). The system also makes deduction for ACC earners levy, student loan repayments, child support deductions, employee Kiwisaver deductions and employer Kiwisaver contributions.


Employers with annual PAYE in excess of $100,000 are required to file their monthly return to IRD electronically.

The rates of deduction from employees can be determined from taxation tables produced by IRD, or otherwise by visiting their website.

Self-employed contractors, and companies operating in the horticultural and viticultural industries, are usually liable to have withholding tax deducted from their contract income by their contract "employer". Contractors are responsible for their own ACC earner's levy and student loan repayments.  The rates of deduction required to be made are set out on the IRD website