Plain language law

New Zealand law explained for everyone

Income Tax Act 2007

General collection rules - Intermediaries - Employers’ responsibilities

RP 10: When transfers from accounts not authorised

You could also call this:

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

If you’re an employer and you haven’t given permission to a PAYE intermediary to move money around as described in section RP 9, there are some rules you need to follow.

If you pay your employee directly for their work in a pay period as per section RP 12, you must put the amount of tax for that payment into the PAYE intermediary’s trust account. This tax includes what’s required by the PAYE rules and ESCT rules.

If you haven’t given the PAYE intermediary permission to move funds, and you’re not paying your employee directly, you need to put your employee’s full pay (before tax) for the pay period into the PAYE intermediary’s trust account. But don’t worry, you can keep any money the employee legally owes you before you put the rest in the account.

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 It might be out of date or be missing some parts.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=DLM1520520.

Topics:
Money and consumer rights > Taxes
Previous

RP 9: Authorised transfers from accounts, or

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

Next

RP 11: Employer's superannuation cash contributions, or

“Paying employee super contributions to a PAYE intermediary's trust account”

Part R General collection rules
Intermediaries: Employers’ responsibilities

RP 10When transfers from accounts not authorised

  1. If an employer has not authorised a PAYE intermediary to direct the transfer of funds as described in section RP 9, and the employer pays salary or wages directly to an employee for a pay period under section RP 12, the employer must pay the amount of tax for the payment required under the PAYE rules and ESCT rules into the PAYE intermediary’s trust account.

  2. If the employer has not authorised the PAYE intermediary to direct the transfer of funds as described in section RP 9, and subsection (1) does not apply, the employer must pay the amount of the employee’s gross salary or wages for the pay period into the PAYE intermediary’s trust account. However, the employer may retain an amount lawfully owed to them by the employee before making the payment.

Compare