PAYE on Salaries and Wages

What is PAYE?

PAYE is an abbreviation for Pay As You Earn and it is the basic tax taken out of your employee’s salary or wages.

Each employee will have their own tax code and this code will determine how much PAYE you need to deduct from their gross salary or wages.


How do I get an employee’s tax code?

When a new PAYE employee starts working for you, you must have them complete a Tax Code Declaration (IR 330). You will then be issued with the employee’s current tax code.

Should an employee fail to complete a tax code declaration you must deduct PAYE at the standard non-declaration rate.


What else do I need to do as an employer?

You must also file an Employer Monthly Schedule with the IRD, which details each employee’s gross earnings and deductions.

If your gross annual PAYE is more then $100,000, you must file your schedule electronically, using the IRD’s IR File system.


Not sure what to do?

Give us a call and we can have a look together at how your PAYE is working.

Alternatively, you can find lots more PAYE information on the IRD website.