What is pay as you earn (PAYE)?

When an employee has tax directly taken from their wage or salary, this is known as Pay As You Earn (PAYE). 

In New Zealand, to ensure the correct amount of tax is deducted from an individual, they must fill out an IR330 form with their tax code on it. If an employee hasn’t told their employer or payer what their code is they will be taxed at a higher non-declaration rate of 45%.

Payday Filing is a part of the PAYE process and involves employers calculating and deducting PAYE, then sending the details to Inland Revenue. PayHero has an integration with IRD, enabling easy Payday Filing.