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Tax codes

Employees must provide a valid code, so that tax is deducted at the correct rate. Employees must complete an IR330 - Tax code declaration form as soon as they start working at your school, or if their tax details change.

If your employee does not provide a valid tax code on the IR330, Education Payroll is required to deduct tax at the no-notification rate. See the Inland Revenue's website: Deductions from salary and wages

Secondary tax code

An employee will provide a secondary code for secondary employment if their primary job (their main income) is not in State education and their secondary job is at your school.

An employee should not use a secondary code if they are already paid by Education Payroll, either in one school or a number of schools. This is because Education Payroll pays tax from all accumulated education income.

Tax code declaration for new employee

Ask the employee to complete an IR330 - Tax c o de declaration form.
Enter the tax code details into EdPay when you create a new employee
See New appointment

Change tax code

Ask the employee to complete an IR330 - Tax code declaration form.
Enter the tax details into the employee's financial details page in EdPay or, if they are a reliever, enter the tax details on an EP4 form and send the form to Education Payroll.

Tailored tax codes

A tailored tax code is provided by Inland Revenue for an employee's specific circumstances. It takes effect from either 1 April, or the date that Inland Revenue approves it (if it begins after the start of the tax year). Special tax codes end 31 March, at the end of the tax year. See the Inland Revenue's website: Employees with tailored tax codes

An employee on a tailored tax code must renew it each tax year and provide a copy of the IR23 - Special Tax Code or Deduction Rate Certificate to their employer. If they do not do this, they will be placed on the no-notification rate until a new tax code is received. When you receive the IR23 from the employee, do the following:

Ask the employee to complete an IR330 - Tax c od e declaration form, then:

enter the employee's new details into EdPay. When you receive the ticket, respond to the email with the IR23 form or Deduction Rate certificate from IRD

or
if the employee is a reliever, transfer the new tax details to the EP4 form and send the form to Education Payroll with a copy of the IR23 form or Deduction rate certificate.