PAYE needs to be deducted from any loss of earnings compensation that ACC pays to your employees. ACC will deduct PAYE using the employee's tax code.
Three situations can occur if you pay an employee who has been injured at work:
- An employee is injured at work and you pay them until they start receiving compensation, deduct PAYE using their tax code.
- You subsidise an employee who is receiving compensation, deduct PAYE from the extra payment you make using the secondary tax rates.
- You pay an injured employee's salary/wages and ACC reimburses you, deduct PAYE using the employee's tax code.