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Income Tax Act 2007

General collection rules - Intermediaries - Obligations and treatment of PAYE intermediaries

RP 2: PAYE intermediaries

You could also call this:

“Rules for using someone to handle your PAYE and ESCT duties”

You can ask someone else to handle your pay-as-you-earn (PAYE) and employer’s superannuation contribution tax (ESCT) duties. This person is called a PAYE intermediary. They must be approved by the government to do this job.

If you choose to use a PAYE intermediary, they will do two main things for you:

  1. They will take out the right amount of tax from payments and send it to the tax office.
  2. They will file a tax return about the payments and taxes.

Even if someone stops being your PAYE intermediary, they still have to follow the rules about any money you gave them when they were your intermediary. They must handle this money correctly, just like they did when they were your active intermediary.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520503.

Topics:
Money and consumer rights > Taxes
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RP 1: What this subpart does, or

“ This subpart outlines the duties and rules for PAYE and tax pooling intermediaries ”

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RP 3: Requirements for listed PAYE intermediaries, or

“Rules for PAYE tax collection helpers have been removed”

Part R General collection rules
Intermediaries: Obligations and treatment of PAYE intermediaries

RP 2PAYE intermediaries

  1. An employer may arrange to transfer their pay-as-you-earn (PAYE) and employer’s superannuation contribution tax (ESCT) obligations to a person approved under section 124I or 124L of the Tax Administration Act 1994 as a PAYE intermediary.

  2. A PAYE intermediary must, on behalf of an employer who has transferred an obligation to them under subsection (1),—

  3. withhold and pay to the Commissioner the amount of tax for a payment under the PAYE rules and the ESCT rules; and
    1. file a return of income relating to the payment and the amount of tax for the payment.

      1. A person who stops being a PAYE intermediary for an employer has the rights and obligations under the PAYE rules and ESCT rules of a PAYE intermediary in relation to funds that—

      2. the employer pays to the person as intermediary; and
        1. the person holds at the time they stop being an intermediary.

          Compare
          Notes
          • Section RP 2(1): amended, on , by section 235(1)(b) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section RP 2(1): amended, on , by section 293 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).
          • Section RP 2(2): amended, on , by section 235(2) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section RP 2(3): amended, on , by section 235(3) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).
          • Section RP 2 list of defined terms listed PAYE intermediary: repealed, on , by section 235(4) of the Taxation (Annual Rates for 2017–18, Employment and Investment Income, and Remedial Matters) Act 2018 (2018 No 5).