Tax Information

This window holds information relating to the employee's:

  • Tax rates and Tax Code declaration; and
  • KiwiSaver records.

The window also includes details of the employee's data to be transmitted to the IRD via the Payday Filing EI (Employment Information) and ED (Employee Details) interface files.

Prerequisites

  • No prerequisites

Rules and Guidelines

  • Program Control Option KWSVR determines if the KiwiSaver, Send Data to IRD and New Employee fields are automatically populated during the Hire process.

  • Prevar *SELFSSERV_SHOWTFN controls the display of the IRD number for NZ databases (Country Code set to NZ).

    Prevar set to Y

    • ESS user will only see their own IRD number on the ESS Tax Details window.
    • MSS user will see their own IRD number on the My Details ESS Tax Details window.
    • MSS user will NOT see the IRD number on the Preceda Tax Details window for employees unless the MSS user has a Security Officer flag set to Y on their MSS User ID.

    Prevar set to N

    • ESS user will see the IRD number as ###### on the ESS Tax Details window.
    • MSS user will see the IRD number as ###### on the My Details ESS Tax details window.
    • MSS user will NOT see the IRD number on the Preceda Tax Details window for employees unless the MSS user has a Security Officer flag set to Y on their MSS User ID.
  • Information entered on this window could be accessible to the employee when logging into Employee Self Service.

Field Information

Tax

This is the employee's IRD number.

  • The Validate button is used to check that the employee's IRD Number matches the IRD algorithm.
  • The IRD Number cannot be changed while a Payrun that includes the selected employee is in progress.
  • During the upload of employee information from Mapper, if the IRD Number is tested as invalid, the record is rejected and is reported in the exceptions report and file. However, if the IRD Number is blank during a Mapper upload, the field is set to zero.

 

This is the tax code relevant to the employee. Select a valid value from the list provided.

Code Description
A STC - Special Tax Code
B WT - Schedular Payments
C CAE - Casual Agricultural Employee
E EDW - Election Day Worker
I ME - Main Income - IETC
M M - Main Income
N ND - Non Declaration
P SB - Secondary income <= $14,000
R NSW - Non-Resident Seasonal Worker
S S - Secondary income $14,001 to $48,000
U SH - Secondary income $48,001 to $70,000
V ST - Secondary income $70,001 to $180,000
W SA - Secondary income > $180,000

 

For more information, see this section.

Use this field to record the flat rate percentage where an employee is on a Special Tax Code in the Tax Code field.

If this does not apply, then leave this field at the default value of 0.00.

Select a valid value from the list provided:

Code Description
6 Extra Pay Tax Rate of 17.5%
7 Extra Pay Tax Rate of 30%
8 Extra Pay Tax Rate of 33%
9 Extra Pay Tax Rate of 39%
A Student Loan plus Extra Pay Tax Rate of 17.5%
B Student Loan plus Extra Pay Tax Rate of 30%
C Student Loan plus Extra Pay Tax Rate of 33%
D Student Loan plus Extra Pay Tax Rate of 39%
S Student Loan


The Extra Pay in the table above is referring to the tax calculation on Allowance Payments where the A/D Classification is X or G.

This is a nominated percentage to be deducted for Student Loans. This value will override the standard % calculated.

  • This field will only be accessible when the Supplementary Tax Code is set to S, A, B or C.
  • If the Supplementary Tax Code is changed to a code other than S, A. B or C, the value in this field remains, but will not be accessible.
  • Student loan calculated values will be truncated to cents.

 

  • Activated when the Tax Code is 'A' - STC and Supplementary Tax Code is 'S' -Student Loan
  • When ticked, the Student Loan Override % will be calculated on every dollar earned.

 

Indicate the type of income of the employee.

This is set to Salary and Seasonal Worker by default.

Code Description
1 Salary and Seasonal Worker
2 Pension (Non-Super Annuities)

 

Indicate if the employee is a New Zealand Tax resident (ticked) or not (unticked).

 

Payday Filing & KiwiSaver

This displays the date when the employee was included in the Payday Filing Employee Details reporting file.

When flagged/ ticked, the employee will be included in the next processing of the Payday Filing Employee Details file.

This defaults to checked (Y) when the employee Status changes to 'T' (Terminated).

This tickbox is used to identify when a newly hired employee needs to be reported to the IRD in the Payday Filing Employee Details file.

This defaults to checked (Y) during the New Hire process when Position 14 of Program Control KWSVR = Y.

This resets to unchecked (N) when the employee is included in Payday Filing Employee Details reporting.

This is the employee's KiwiSaver status. Select from the available options:

Code Description
C Savings Suspension
E Opt In
H Automatic Enrolment
I Existing KiwiSaver Member
N Not eligible for KiwiSaver
O Opt Out
T Casual/Temporary

The value selected in this field will control the availability of the related date fields.

This defaults to (H) during the New Hire process when Position 14 of Program Control KWSVR = Y.

This is the date when the employee opted in of the KiwiSaver scheme. This field will be greyed out unless the KiwiSaver Status option E has been selected. This information is for your records only and is not sent to IRD.

This is the date when the employee opted out of the KiwiSaver scheme. This field will be greyed out unless the KiwiSaver Status option O has been selected. This information is used in the ED file sent to IRD.

This field is only editable when the KiwiSaver Status is set to O.

Code Description
INER Employee Incorrectly Enrolled under the age of 18
CRIT

Employee did not meet the Criteria to join KiwiSaver
ERIS Employer didn't provide an Investment Statement for chosen Scheme
IRIS IR Investment Statement not sent upon allocation to a default Scheme
INFO KiwiSaver Information Pack not provided within 7 days of Start date
EVNT Opt Out application was unable to be submitted within 8-week limit
OTHR Other Explanation

 

Enter the start date when the Savings Suspension started. This field will be greyed out unless the KiwiSaver Status option C has been selected. This information is for your records only and is not sent to IRD.

Enter the end date when the Savings Suspension ended. This field will be greyed out unless the KiwiSaver Status option C has been selected. This information is for your records only and is not sent to IRD.

This is used to record the date when an employee provides you with a KS51 form to stop KiwiSaver deductions as they are eligible to withdraw their funds. This information is for your records only and is not sent to IRD.