PAYE (pay as you earn) is the basic deduction made from an employees' wage. It includes an ACC earners' levy. 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.

Filing and payment responsibilities for salary and wage deductions differ depending on your gross annual PAYE payments. Employers with gross annual PAYE of $100,000 or more must file their Employer monthly schedules (IR348/EMS) and Employer deductions (IR345/EDF) forms electronically using ir-File. This option is also available to employers with gross annual PAYE of less than $100,000.

Employers with gross annual PAYE of less than $500,000 must file an Employer monthly schedule (IR348) and Employer deductions (IR345) form, and make payments to us once a month.

Employers with gross annual PAYE of $500,000 or more must file an Employer monthly schedule (IR348) once a month and file Employer deduction (IR345) forms and make payments to us twice a month:

• 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.