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New Zealand law explained for everyone

Child Support Act 1991

Automatic deductions - Automatic deductions

166: Position where liable person has 2 or more employers

You could also call this:

“How child support is paid when you have more than one job”

When you owe child support and have more than one job, the Commissioner of Inland Revenue can handle your payments in different ways:

They might choose one of your employers to be responsible for deducting child support from your pay. This means only one of your jobs will have child support taken out.

Or, they might set up a plan where two or more of your employers deduct child support. They’ll make sure that the total amount you pay is the same as if you only had one job.

If you ask, the Commissioner might let one or more of your employers ignore the usual rule about how much they can take from your pay. But they’ll make sure that after all the deductions, you still keep at least 60% of your pay after tax.

When we talk about employers in this law, we also mean PAYE intermediaries. These are companies that help employers with their payroll.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM256585.

Topics:
Family and relationships > Children and parenting
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"How much money you keep when child support is taken from your pay"

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"Money taken for child support must be kept safe for the government"

Part 10 Automatic deductions
Automatic deductions

166Position where liable person has 2 or more employers

  1. Where a liable person is in receipt of source deduction payments from 2 or more employers, the Commissioner may—

  2. treat any one of the employers as the only employer for the purposes of this Part; or
    1. apply this Part in relation to any 2 or more of the employers with such modifications as the Commissioner considers appropriate, being modifications made for the purpose of ensuring that the amounts collected under this Part in relation to the liability are, in the aggregate, the same as those that would be collected in relation to the liability if the liable person had only 1 employer.

      1. Without limiting the generality of subsection (1)(b), where a liable person has more than 1 employer, the Commissioner may, under that subsection and on the request of the liable person, disregard, and instruct an employer of the liable person, or a PAYE intermediary for the employer, to disregard, the provisions of section 165(1) provided that the total deductions made under deduction notices by all employers of the liable person and all PAYE intermediaries must not reduce the person's total net earnings in respect of a pay period to an amount that is less than 60% of the residue that remains after deducting from the source deduction payments the amount of any tax withheld under the PAYE rules of the Income Tax Act 2007.

      2. In this section, PAYE intermediary has the same meaning as in section YA 1 of the Income Tax Act 2007.

      Notes
      • Section 166(2): added, on , by section 30 of the Child Support Amendment Act 1999 (1999 No 81).
      • Section 166(2): amended, on (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).
      • Section 166(2): amended, on , by section 6(1)(a) of the Child Support Amendment Act 2003 (2003 No 8).
      • Section 166(2): amended, on , by section 6(1)(b) of the Child Support Amendment Act 2003 (2003 No 8).
      • Section 166(3): added, on , by section 6(2) of the Child Support Amendment Act 2003 (2003 No 8).
      • Section 166(3): amended, on (effective for 2008–09 income year and later), by section ZA 2(1) of the Income Tax Act 2007 (2007 No 97).