Deductions Tax and Compliance for New Zealand

Dayforce Implementation Guide
Version
R2025.1.1
Deductions Tax and Compliance for New Zealand

For general information about tax and compliance details for deduction definitions, see Tax and Compliance Details for Deductions

You can configure a predefined or custom deduction code to control how taxes in New Zealand are applied to deductions using deduction definitions. In Payroll Setup > Earnings and Deductions, tax and compliance settings for deductions are configured in the Deductions > Tax & Compliance tab, which includes general top-level settings, and New Zealand-specific settings in the New Zealand tab.

Note the following about the top-level settings for New Zealand deductions:

  • The SuperAnnuation checkbox indicates whether the deduction is used for superannuation deductions.
  • To add a New Zealand-specific deduction in the Country field, select Match All and select New Zealand.
Settings for New Zealand tax and compliance deductions
Setting Description
Tax Type

Select one of the following options to define how the deduction impacts earnings and taxable wages:

  • Gross Pay Deduction: (Pretax deduction) Dayforce reduces the taxable wages by the deduction amount before deducting employee tax. For example, if an employee has $1,000 in earnings and a $100 deduction, their taxable wages are $900.
  • Net Pay Deduction: (Post tax deduction) Dayforce withholds the deduction from the payment after it deducts employee tax. For example, if an employee has $1,000 in earnings and a $100 deduction, their taxable wages are $1,000.
  • Memo Deduction: The deduction doesn't impact an employee's earnings or taxable wages and shows in the Memo Information section of the earning statement.
Tax Method

Select one of the following options, depending on your selection in the Tax Type drop-down list.

Pre Tax:

  • Other Pretax

Post Tax:

  • KiwiSaver Employee
  • Miscellaneous. The deduction definition is calculated on gross earnings before applying the pay as you earn (PAYE) tax for New Zealand.
  • Other post tax
  • Superannuation Employee NZL
  • Workplace Giving

Memo Deduction:

  • KiwiSaver Employer
  • KiwiSaver Employer - Voluntary
  • Superannuation Employer NZL