Employers have to know and hold considerable amounts of personal information about their employees (such as whether their employee has a student loan, or is liable for child support) to deduct the right amount of income tax and other Inland Revenue deductions from their pay.

Emily runs a community garden, and employs Saul to teach children about growing fruit and vegetables.
Saul is liable for child support for a child he had with his previous partner.
Emily already deducts child support from Saul’s pay as per Inland Revenue’s instructions.
Saul’s new partner has just given birth, and Inland Revenue have sent Emily a letter with instructions to deduct a new amount from Roger’s pay.
Emily now has to make sure she deducts the new amount correctly from Saul’s next pay, update her payroll system, and make sure her employer monthly schedule (IR348) reflects the new amount.
 

Employers will no longer need to know the personal liabilities and circumstances of their employees (such as child support and student loan liabilities), because their payroll and accounting software will be integrated with and populated by Inland Revenue’s systems.
Employees will now manage any changes in their personal circumstances themselves, through their own personalised and secure page in the Inland Revenue website.
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.
 

Emily runs a community garden, and employs Saul to teach children about growing fruit and vegetables.
Saul is liable for child support for a child he had with his previous partner.
Saul’s new partner has just had a child.
Saul logs on to his personalised, secure page in the Inland Revenue website and updates his information. Saul receives immediate confirmation from Inland Revenue that his personal circumstances have been updated and that this new information has been filtered through to his employer’s payroll and accounting software.
At Saul’s next pay-day, his new pay will reflect the change to his personal circumstances.
Emily’s payroll and accounting software is integrated with Inland Revenue’s systems and calculates Saul’s new deductions automatically.
Emily does not need to know about Saul’s child support liabilities or any other details about his personal circumstances.