Employers are required to manage employee deductions for income tax, and a raft of social policy payments, obligations and contributions, and transfer this information through schedules and forms to Inland Revenue.

Mahi Trust employs several hundred students every year as collectors for its annual appeal.
Completing the PAYE documentation is a major administrative undertaking for the trust, and requires it to obtain information from each student, including whether they are liable for student loan repayments.
Many pages of paper returns need to be submitted to Inland Revenue to advise of the payments and deductions.
 

Employers will no longer need to know the personal liabilities and circumstances of their employees, because their payroll and accounting software will be integrated with Inland Revenue’s systems.
Employers will only need to enter information about their employees’ gross wages and their software will calculate the deductions without the employer knowing what the deductions are for.
 

Mahi Trust employs several hundred students every year as collectors for its annual appeal.
The trust simply enters the each student’s IRD number and the number of hours worked into its payroll system.
The payroll system calculates gross wages and the appropriate tax and student loan deductions using information it automatically downloads from Inland Revenue.
It also automatically notifies Inland Revenue of the deductions, meaning no separate returns need to be filed.