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Income Tax Act 2007

General collection rules - Employment-related taxes - Adjustments for certain PAYE income payments

RD 20: Schedular payments to subcontractors

You could also call this:

“Rules for contractors paying subcontractors and deducting tax”

If you’re a contractor and you get paid for work you did, this law might apply to you. It’s about when you hire someone else (called a subcontractor) to help you with the job.

When you pay your subcontractor for their work, you need to follow some rules. These rules are called the PAYE rules. PAYE stands for “Pay As You Earn”. It’s about taking out tax from payments before giving the money to the person who did the work.

So, if you’re the main contractor and you’re paying a subcontractor, you need to think about these PAYE rules when you’re giving them their money. This helps make sure the right amount of tax is paid on the work that’s been done.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1519983.

Topics:
Money and consumer rights > Taxes
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Part R General collection rules
Employment-related taxes: Adjustments for certain PAYE income payments

RD 20Schedular payments to subcontractors

  1. This section applies when a contractor is paid a schedular payment for services provided under a contract, and a subcontractor has provided services under the contract.

  2. The PAYE rules apply to the contractor in relation to a payment made to the subcontractor in relation to the work carried out under the contract.

Compare
  • Income Tax (Withholding Payments) Regulations 1979, regulation 12