Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - Intermediaries - Employers’ responsibilities

RP 9: Authorised transfers from accounts

You could also call this:

“You must ensure funds are available when your PAYE intermediary transfers money to pay employees”

When you allow a PAYE intermediary to move money from your bank account to pay your employees, you need to make sure there’s enough money in the account. The PAYE intermediary will tell you when they need to transfer the money. You have to check that you have enough funds in your account at that time. This applies for each employee and each time they are paid.

A PAYE intermediary is someone who helps you manage your pay-as-you-earn (PAYE) tax responsibilities. They can handle paying your employees and sorting out the tax for you. When you give them permission to use your bank account for this, it’s called an authorised transfer.

Remember, it’s your job to keep track of how much money is in your account. The PAYE intermediary will let you know when they need to take the money out, but it’s up to you to make sure it’s there when they need it.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520518.

Topics:
Money and consumer rights > Taxes
Money and consumer rights > Banking and loans
Previous

RP 8: Information for PAYE intermediaries, or

“You must provide necessary information to your PAYE intermediary”

Next

RP 10: When transfers from accounts not authorised, or

“Rules for employers when PAYE intermediary can't move funds”

Part R General collection rules
Intermediaries: Employers’ responsibilities

RP 9Authorised transfers from accounts

  1. This section applies when an employer has authorised the PAYE intermediary to direct the transfer of an amount from the employer’s bank account to meet an obligation that the PAYE intermediary has on the employer’s behalf in relation to an employee and a pay period.

  2. The employer must ensure, at a time fixed by the PAYE intermediary, that the bank account has sufficient funds available for the transfer.

Compare