The Apply NZL Tax Rule is used to apply New Zealand taxes to employee pay. The rule triggers Dayforce to calculate the amount of taxes deducted from gross pay. This rule is the New Zealand equivalent of the Apply Taxes Rule that is used for Canadian and US employees.
Important: Every ruleset for New Zealand employees needs to have an instance of the Apply NZL Taxes Rule added for Dayforce to calculate and apply taxes.
For New Zealand employees, Dayforce applies tax to earnings based on the following factors:
- The configuration of the earning in Payroll Setup > Earnings and Definitions.
- The federal tax info record in the Federal Tax Info section of the Payroll > Tax Definitions screen in People.
Employee address and work location address do not impact tax rules.
Apply NZL Taxes Rule Parameters
Although parameters are displayed in the Apply NZL Taxes Rule, they aren’t used by the application. To configure Dayforce to deduct taxes from employee earnings, you need to add the Apply NZL Taxes Rule to each ruleset, but you don’t have to define values for any of the parameters.