Pay As You Earn (PAYE) is the system of deducting income tax installments from employees' personal earnings, and remitting the money to the New Zealand Inland Revenue Department (IRD).
The amount of tax payable is determined by the information provided on the Employment Declaration form.
What tax codes are available for PAYE?
The following tax codes have been defined by the IRD for 2000/2001:
| Code | Description |
| M | Main Income |
| ML | Main Income <$9880 |
| S | Secondary Income =<$38000 |
| SH | Secondary Income >$38000 |
| CAE | Casual Agricultural Employees |
| EDW | Election Day Workers |
| M SL | Main Income with Student Loan |
| S SL | Secondary Income =<$38000 with Student Loan |
| SH SL | Secondary Income >$38000 with Student Loan |
| ND | Non-Declaration rate |
| Extra Emolument | |
| STC | Special Tax Code |
| ST | Secondary Income >$60000 |
| STSL | Secondary Income >$60000 with Student Loan |
The tax year starts on 1 April one year and ends on 31 March the following year. Each tax year may be referred to as a combination of the two partial calendar years, for example 99/00.