Use the EDW tax number for income from election work. When it`s time to renew your personalized tax legislation, Inland Revenue will send you a letter via myIR, and you can fill out the online form. You will need a special tax certificate and will need to attach a copy to form IR 330. The tax identification number is STC. If we determine that you are using the wrong tax identification number, we will ask your employer or payer to change it and notify you. We do this to prevent you from being taxed more than you should during the tax year or to avoid receiving an invoice at the end of the tax year. Talk to us if you disagree with our decision to change your tax legislation. We will change your tax number and send you a letter to let you know how this affects your payments. To change your custom tax number to a standard tax number, you must complete the “Change Tax Number” form. Use the CAE Tax Identification Number if you are doing occasional farm work. Change your tax number to NZ Super and Veteran`s Pension If you don`t fill out this form with the right IRD number and the right tax number, you may be taxed much more than necessary. No one needs to cut their travel money! If the amount you receive from NZ Super is less than your wages or salaries, this is a secondary source of income and you must use one of the following tax codes. Inland Revenue will tell us what your tax identification number is.
If you receive NZ Super, you can change your tax legislation through the Department of Social Development website. Let us know immediately if you need to change your tax legislation, .B. if you stop working so we can pay you the right amount at NZ Super or Veteran`s Pension. The good news is that it is a common misconception that people pay a higher tax rate when they get a secondary tax law. New Zealand`s tax and PAY system is designed to tax employees at the correct rate. We have a progressive tax system that ensures that individuals pay a higher tax rate if they earn more. Our current tax rates for natural persons are as follows: A special tax code is only valid for 1 tax year (from April 1st to March 31st). If you apply in the middle of the year, it will apply from the date IR approves it until the end of that tax year.
You only know the exact amount of tax you will have to pay or that will be refunded to you after receiving your personal tax summary or completing an individual IR3 tax return. If you have personalized tax legislation, you will have to renew it at the end of each financial year at the Tax Office. If you do not renew your custom tax code, you will need to change it to a standard tax code and let us know. This tax legislation applies to independent contractors, not employees. Refer to the list of contractor work types on page four of the IR 330 form to complete your payment activity for planners on the first page of the IR 330 form. The tax legislation is WT. With your IR 330 form, you get an organizational chart that you can use to determine your personal tax code. Be sure to refer to this flowchart or use the “Tax Code Finder” on the IRD website if you think you have an unusual case for taxation in New Zealand. Right now, we`re going to review the tax laws that apply most to people on working holidays in New Zealand.
If form IR 330 is for employment that is not your highest source of income, you will need to provide a secondary income tax code. Your secondary tax code is determined by your combined annual income and whether you repay a student loan. Since a working holidaymaker probably doesn`t have a New Zealand student loan, these are the likely secondary income tax codes. Your tax number is M unless you have a student loan. If you have a student loan, your tax identification number is M SL. The whole issue of payroll, including tax codes, deductions, including student loans, KiwiSaver and child support, is a minefield and takes an enormous amount of time to manage for small businesses. Other tax laws such as CAE (Casual Agricultural Workers), WT (Schedular Payments) and the credit for self-employed individuals earning between $24,000 and $48,000 (ME tax code) all have their own rules. While payroll programs speed up the process, we`ve found that sometimes even the computer does it wrong, especially when a bonus or other large salary payment exceeds one of the income thresholds. The tax administration has a very good PAYE calculator on its website that can be useful for these situations. In reality, the system works and calculates the tax correctly in about 90% of cases. The 10% of the time the secondary tax system does not work is when a person`s income exceeds one of the income thresholds ($14,000, $48,000 or $70,000) because of income from their second job. An example of this is when someone`s first job earns them $40,000 a year, for which they would have a tax number M.
Their second job earns them $10,000 a year, for which they would have an HS tax number. The HS tax code imposes them at 30% on their income of $10,000, with their first income of $8,000 from their second job being taxed at only 17.5%. Over the course of the year, this person will deduct the PAYE from their salary totalling $9,020, although the tax on $50,000 should actually be $8,020. So you`ll be overwhelmed by $1,000. Until the tax administration updates its computer system, the only way to get around this problem is for people to file a tax return or request a personal tax summary from the IRD or request a special tax rate from the tax administration. You need to develop your tax legislation for each source of income you receive. All new employees who take up employment must complete a tax form (IR330). The employee is responsible for choosing a tax code and there is an organizational chart that the IRD has created to determine the tax identification number on which an employee must appear. If a person`s annual income from all sources is likely to be less than $14,000, the secondary tax number (for their second job) is SB. If the income is likely to be between $14,000 and $48,000, the tax number is S. If the income is to be between $48,000 and $70,000, an HS tax code will be used and if the income from all sources is greater than $70,000, a ST income tax code will be used. Income from a self-service tax code is taxed at 10.5%, for an S code the tax rate is 17.5%, for an HS code the tax is 30% and for an ST code 33%.
If you receive a personalized tax law during the tax year, it starts on the date we approve it and ends on March 31. If you have a student loan, use a tax number that asks your employer to deduct your refunds. There are a few other tax legislation options for certain professions in New Zealand that may well apply to people on working holidays, especially if they work for a salary in agriculture. These are: Use New South Wales tax legislation if you are a recognised seasonal worker or if you hold a work visa as a foreign crew member of a vessel fishing in New Zealand waters. .