PAYE on Salaries & Wages
If your income is from salary, wages, benefits or taxable pensions, your tax will automatically be deducted under the pay-as-you-earn (PAYE) system. This means when you get your weekly, fortnightly, or monthly pay, your tax has already been deducted from it.
PAYE is the tax your employer deducts from your salary and wages. It includes:
- the tax rate for your income, and
- an ACC earners' levy
Tax rates for the 2017 - 2018 financial year.
|Taxable Income ($)||Tax Rate|
Up to 14,000
*These rates are ACC-exclusive.
- If you are an employer, then you must file an employer monthly schedule detailing each worker's gross earnings and deductions every month
- If you are an employee, you must complete a Tax code declaration (IR 330) as soon as you start work for your employer. If you fail to complete the tax code declaration, you will be taxed at the PAYE no-declaration rate.