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Income Tax Act 2007

General collection rules - Intermediaries - PAYE intermediaries’ responsibilities

RP 15: When employers have authorised transfers from accounts

You could also call this:

“Employers allow tax agents to transfer money for employee wages and taxes”

If you’re an employer and you’ve given permission to a PAYE intermediary to handle your taxes, here’s what happens:

When the PAYE intermediary is about to pay your employees’ wages or salary, they must make sure that the right amount of tax is sent to the right place. This tax includes PAYE (Pay As You Earn) and ESCT (Employer Superannuation Contribution Tax).

The intermediary has to send this tax money to one of two places:

  1. Directly to the Commissioner of Inland Revenue, or
  2. To a special trust account that the PAYE intermediary has set up. You would have told the intermediary about this account when you first agreed to use their services.

The intermediary must do this at the same time or before they pay your employees. This makes sure the correct taxes are always paid on time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520531.

Topics:
Money and consumer rights > Taxes
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“Rules for PAYE intermediaries on tax collection and reporting”

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RP 16: Obligations for employer’s superannuation contributions, or

“PAYE intermediaries manage superannuation contribution tax duties for employers”

Part R General collection rules
Intermediaries: PAYE intermediaries’ responsibilities

RP 15When employers have authorised transfers from accounts

  1. If a PAYE intermediary has been given an authorisation by an employer under section RP 2(1), the intermediary must direct that, at or before the time of the transfer of the payment of salary or wages, an amount equal to the amount of tax for the payment required under the PAYE rules and ESCT rules is transferred to—

  2. the Commissioner; or
    1. the trust account established by the PAYE intermediary and identified in the employer’s notice under section 124O of the Tax Administration Act 1994.

      Compare
      Notes
      • Section RP 15(b): amended, on , by section 293 of the Taxation (Annual Rates for 2018–19, Modernising Tax Administration, and Remedial Matters) Act 2019 (2019 No 5).