Tax Facts
PAYE on Salaries & Wages
Pay As You Earn (PAYE) is the basic
tax taken out of your employees' salary or wages. The
amount of PAYE you deduct depends on your employee's
tax code.
PAYE employees must complete a Tax
code declaration (IR 330) as soon as they start
working for you. If an employee fails to complete the
tax code declaration, you must deduct PAYE at the no-declaration
rate.
Every month you must file an employer
monthly schedule detailing each worker's gross earnings
and deductions.
If you are a ‘small employer’ with gross
annual PAYE deductions of up to $500,000, the schedule
and payment are made on the 20th of the month following
the deductions.
If you are a ‘large employer’ with gross
annual PAYE deductions over $500,000, the deductions
made from payments made to workers between the:
 |
1st and the 15th of the month are paid by the
20th of the same month. |
|
? 16th and the end of the month are paid by the
5th of the following month (except for December
payment is to be made by 15 January). The employer
monthly schedule is filed along with this payment. |
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