How Do I Set A WT Employee's Elected Withholding Rate?

An employee or contractor on the WT tax code is paid schedular payments, and the rate of tax withheld is set on their IR330C. If no rate is elected, Lightning Payroll withholds tax at the 45% no-notification rate. You can enter the rate the worker has elected so the correct amount is withheld from each schedular payment.

The elected-rate field only appears once the worker's tax code is set to WT.

In the desktop app

1. Open the employee and go to Tax Rates >> Tax Settings.
2. Under the NZ PAYE settings, set the Tax code to WT.
3. Tick Elected Rate for Schedular Payments (IR330C) and enter the rate as a percentage of gross schedular payment.
4. Save the employee.

In the online (web/mobile) app

1. Open the employee and go to the Tax section, then Tax Settings.
2. Set the Tax Code to WT.
3. Tick Elected Rate for Schedular Payments (IR330C) and enter the percentage of gross schedular payment.
4. Save changes.

Things to know

• Leave the elected rate off if the worker has not elected one. Tax is then withheld at the 45% no-notification rate.
• The rate applies to gross schedular payments. Keep the worker's signed IR330C on file in case Inland Revenue queries the deduction.
• WT workers cannot carry a student loan deduction, and a WT worker may use a zero IRD number where Inland Revenue permits it.

For help choosing the correct tax code, see How Do I Choose The Right Tax Code For An Employee?