23JDelivery of employment income information for certain special payments

1. This section applies for the purposes of sections 23E to 23H in relation to—

2. a schedular payment described in section RD 8 of the Income Tax Act 2007:
3. a payment made to a person on a shadow payroll:
4. a payment that an employer makes to an employee outside the regular payment cycle for the employee’s employment income.

5. For a schedular payment referred to in subsection (1)(a), an employer may deliver their employment income information relating to the payment either—

6. on a payday basis under sections 23E to 23H, as applicable; or
7. twice-monthly as described in section 23C(4), treating the payday as the relevant day.

8. For a payment referred to in subsection (1)(b), a non-resident employer has 20 days after an amount is paid to the person before the requirement to provide employment income information arises. The employer may—

9. treat the 20th day as the payday for the purposes of sections 23E to 23H, as applicable; or
10. provide their employment income information relating to the payment twice-monthly as described in section 23C(4), treating the 20th day as the relevant day.

11. For an out-of-cycle payment referred to in subsection (1)(c), an employer may deliver their employment income information relating to the payment either—

12. on a payday basis under sections 23E to 23H, as applicable; or
13. together with their information for the employer’s next regular reporting date for the delivery of information relating to the employee.

14. Despite subsection (4), if the next regular reporting date referred to in subsection (4)(b) falls after the employer’s end date for the payment, as described in section RA 15(3)(a) and (b) of the Income Tax Act 2007, and would mean that, for reconciliation purposes, the information relating to the payment and the employee would appear to be reported as if the payment related to a later period, the employer must treat the payment as if it were made on a date that is not later than the end date.

15. For the purposes of subsection (1)(b), a payment made to a person on a shadow payroll is a PAYE income payment paid by a non-resident employer to a person who undertakes employment services in New Zealand but who remains on the employer’s payroll system in a country or territory outside New Zealand.

16. Section 23F(3)(b) and (4) overrides this section.