Deductions from salary/wages

If your business employs staff, you must make certain deductions from their pay, including PAYE (pay as you earn).

As well as deducting PAYE, which includes an ACC earners' levy, you may need to also deduct:

• student loan repayments
• child support

Contractors who perform certain activities for your business are paid schedular payments (formerly withholding payments) that are subject to a flat tax rate. Remember, the money you deduct belongs to your employees and you mustn't use it for any other purpose other than to pay it to Inland Revenue.