Handling a notice from the IRD

Every now and then you'll get a letter from the IRD that requires you to make a special deduction for an Employee. Following is a bit of advice to help manage two of the more common ones.

STUDENT LOAN COMPULSORY EXTRA DEDUCTION NOTICE

This is when student loan deductions for an employee have been insufficient and the IRD want them caught up. To manage this go to Employee Settings, Employee Details, then select the employee and click on their 'IRD Num & Tax Code' link. This will pop-up a white screen. 
If not already selected choose a Normal Tax Code with an 'SL' in it, e.g. M SL. Now tick the box beside 'Commissioner Deduction (SLCIR)' and enter the Effective Date (from the start of the Employees next pay period), the Rate (Compulsary extra deduction rate as advised by IRD) and then the Total Amount to recover. Then click 'Save' and it's done.
DEDUCT AMOUNTS OWED TO INLAND REVENUE NOTICE

This is effectively a tax debt recovery demand. These are managed by going to Employee Settings, Employee Details, then select the employee and click on their 'Tax Arrears' link. This will pop-up a white screen.

Enter the Total Amount demanded and complete the payment details as provided in the IRD's notice. Click 'Save' and it's done.

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