Notification from IRD to deduct Tax Arrears Deduction

If 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. 

Check the details of the Employee name, their IRD number, payday and pay period on the notice, if it is incorrect you will need to contact IRD. 

The date you must start deducting is stated on the notice.

The payment is included as part of the banking files each payroll.

Page 2 of the notice will have the amount owed to Inland Revenue and the amounts you are required to deduct each pay.

The amount to be deducted may recalculate based on the hours worked by the employee.

If your employee has paid off the arrears, and a deduction has been taken in error, your employee will need to contact IRD to claim any refund.

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:

Edit a Timesheet Template

1. People > View People select the Employee's name.
2. In the Timesheet Template
3. Enter 1 in the Green Qty box.
4. Select the Element TAXA - Tax Arrears from the drop down menu
5. Enter the amount to deduct each pay in the Rate box
6. + Add
7. In Balance * enter the total Amount owed to IRD from the notice: 
8. IRD's bank account and the Employee's IRD # have been completed for you
9. In Payee Reference enter the Employee's Full Name
10. In Payee Code enter ARR
11. Save
    
12. 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.

Sample Notice to deduct amounts owed to Inland Revenue