Earnings Tax and Compliance for New Zealand

You can link a predefined or custom earning code to control how taxes are applied to an earning using earning definitions. In Payroll Setup > Earning and Deductions, tax and compliance settings for earnings are defined in the Earnings tab in the Tax and Compliance sub-tab, which includes top-level settings, as well as New Zealand-specific settings in the New Zealand sub-tab.

Before You Begin: For general information about tax and compliance details for earning definitions, see Earnings and the Earnings Tab in the Dayforce Implementation Guide.

To add a New Zealand-specific earning, in the Country field, select Match All and select New Zealand.

Settings for New Zealand tax and compliance earnings

Setting	Description
PAYE	Select this checkbox if the earning is subject to employee pay as you earn (PAYE) tax.
ACC Earners Levy	Select this checkbox to calculate the cost of rehabilitation and compensation following non-work related injuries. This levy is charged on income that an employee receives.
KiwiSaver	Select this checkbox to calculate KiwiSaver retirement savings scheme contributions for the selected earning.
Fringe Benefit Tax	Indicates whether the earning code is subject to the employer fringe benefits tax (FBT) (that is, the FBT is non-exempt).
Employee Share Scheme	Select this checkbox if the earning code is subject to the employee share scheme (ESS) benefit when an employee purchases or is given shares from their employer for free or below market value.