Child Support Arrears - Deduction Element

Child Support Arrears - Deduction Element

Child Support % Deduction 

You will have received a notification from IRD to deduct an amount each pay for one of your employees.  You are required to do this by law. iPayroll has a standard Pay Element - Child Support Deduction - CSD Element. If you are not able to use this as you are required to direct the amounts to a third party bank account you will need to set up a new Pay Element - Child Support Arrears - CSD ARR.
Check the details of the payday and pay period on the notice, if it is incorrect you will need to contact IRD.
They can amend the amounts to deduct during the year.
Child Support has priority over any other deductions after you deduct PAYE and KiwiSaver.
The date you must start deducting is stated on the notice
In the Payday that you have been instructed to begin deductions, you will need to add this to their Timesheet Template as a permanent deduction:
For more information here CSD - Child Support Deductions
  1. Setup > Pay Elements > Deductions
  2. + Add
  3. Payment Code* > CSD ARR
  4. Description* > Child Support Arrears % to Bank Account
  5. Payslip Description > Child Support Deduction
  6. Calculation Rule* > Percentage of Accumulated Value
  7. Calculation Accumulator > Nett Pay for CSD
  8. Rate %* 1.00
  9. Priority is 899
  10. Payment Details > Bank Schedule
  11. Bank Account > as stated on Notice from IR
  12. Payee Particulars > as stated on Notice from IR
  13. Payee Reference > 0 0 0 TAX NCP
  14. Payee Code > as stated on Notice from IR
  15. Deduction Type > Standard Deduction 
  16. SAVE
  17. In Timesheet Template 
  18. Enter 1 in Qty 
  19. Select > CSD ARR - Child Support Arrears % to Bank Account
  20. Rate > Enter Amount to deduct each pay
  21. Add
  22. When you open the pay, the deduction will be taken.
If you already have a pay open select deduct now to activate the deduction on the current timesheet.


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