Pay As You Earn (PAYE) is the basic tax taken out of your employees' salary or wages. The amount of PAYE you deduct depends on each 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 non-declaration rate.

Employers must use Inland Revenue’s payday filing processes to report payroll information.

Employers must:

• File employment information within 2 working days after every payday online through MyIR or compatible software, unless your annual PAYE/ESCT is less than $50,000 in which case you can still file an IR348 Employment Information return (IR348).
• Provide new and departing employees' address information, as well as their date of birth - if they have provided it to you.

If you are a 'small employer' with gross annual PAYE deductions of up to $500,000, you make payments to Inland Revenue on the 20th of the month following the deductions, although you can choose to pay more often. 

If you are a 'large employer' with gross annual PAYE deductions over $500,000, you need to pay deductions twice a month although you can choose to pay more often.

For more information regarding PAYE or to register as an Employer either call us or visit the Inland Revenue website.