Handling a notice from the IRD
The IRD sometimes require you to make a special deduction for an Employee.
Following are two of the more common ones.
STUDENT LOAN COMPULSORY EXTRA DEDUCTION NOTICE
This is when student loan deductions for an employee have been insufficient and the IRD want them caught up. To manage this go from 'Employee/Contractor', to 'Personal Details', then select the employee and click on their 'IRD Num & Tax Code' blue link.
This takes you to their 'Employee Tax Code' page. If not already selected choose a Normal Tax Code with an 'SL' in it, e.g. M SL. Now tick the box beside 'Commissioner Deduction (SLCIR)' and enter the Effective Date (from the start of the Employees next pay period), the Rate (Compulsary extra deduction rate as advised by IRD) which will need to be entered as a number less than 0.12 (e.g. 41.67% will be entered as 0.04167), and then the Total Amount to recover. Then click 'Submit Changes' and it's done.
DEDUCT AMOUNTS OWED TO IRD NOTICE
This is effectively a tax debt recovery demand. These are managed by going from 'Employee/Contractor' to 'Agreement', then selecting the employee and choosing 'Arrears Payments'. Click 'Add' and choose 'Tax Arrears'. Enter the Total Amount demanded and complete the payment details as provided in the IRD's notice. Click 'Submit Changes' and it's done too.
Following are two of the more common ones.
STUDENT LOAN COMPULSORY EXTRA DEDUCTION NOTICE
This is when student loan deductions for an employee have been insufficient and the IRD want them caught up. To manage this go from 'Employee/Contractor', to 'Personal Details', then select the employee and click on their 'IRD Num & Tax Code' blue link.
This takes you to their 'Employee Tax Code' page. If not already selected choose a Normal Tax Code with an 'SL' in it, e.g. M SL. Now tick the box beside 'Commissioner Deduction (SLCIR)' and enter the Effective Date (from the start of the Employees next pay period), the Rate (Compulsary extra deduction rate as advised by IRD) which will need to be entered as a number less than 0.12 (e.g. 41.67% will be entered as 0.04167), and then the Total Amount to recover. Then click 'Submit Changes' and it's done.
DEDUCT AMOUNTS OWED TO IRD NOTICE
This is effectively a tax debt recovery demand. These are managed by going from 'Employee/Contractor' to 'Agreement', then selecting the employee and choosing 'Arrears Payments'. Click 'Add' and choose 'Tax Arrears'. Enter the Total Amount demanded and complete the payment details as provided in the IRD's notice. Click 'Submit Changes' and it's done too.
