Include schedular payments with your employment information. You do not need to provide contractor's details such as date of birth, start and end dates, and contact details if you do not have them.
Schedular payments made from the 1st to the 15th of the month need to be reported within 2 working days after the 15th. Schedular payments made from the 16th to the end of the month need to be reported within 2 working days after the end of the month.
Get the contractor's tax rate
If the contractor:
- has given you an IR330C form, use the tax rate they listed
- has not given you an IR330C form, use the no-notification rate listed for their activity
- has a special tax rate certificate, use the tax rate that is listed
- has a certificate of exemption, do not withhold any tax.
If the contractor is a non-resident, you only need to deduct tax on schedular payments if they:
- are in New Zealand for more than 92 days in a year, and are not exempt from tax because of a double taxation agreement
- receive $15,000 or more in contract payments over a 12-month period.
Calculate the PAYE due
Multiply the contractor’s tax rate by their gross payment to find the tax to withhold.
Remember that you do not need to deduct student loan repayments, KiwiSaver deductions or ACC levies from schedular payments.
Complete your employer information returns
Record the contractor's start date, end date and payment details on your employer information return, even if their tax rate is zero.
Pay the deduction
Pay us the withholding tax you deducted from contractor payments. This is due when you pay any PAYE you deducted from employees’ wages.