(NZL) Understanding Employee Tax Information for New Zealand

After you enter general employee information into the system, you must also enter employee payroll tax information. You use the New Zealand Tax Overrides program (P75Z0002) to enter tax information for New Zealand employees. Entering payroll tax information enables the system to calculate earnings and tax information to ensure accurate tax reporting to the Inland Revenue Department.

Because you must track tax information for each employee, each time you enter tax override information for an employee, you must create a new record. The records use effective dating to ensure that the Australia New Zealand Tax Calculation Engine (N75A0001) uses the most current information to calculate employee payroll tax amounts. Therefore, if you must change employee tax information, you must create a new record. You cannot update an existing record. When you create a new record, you can specify the beginning effective date of that record. The system automatically ends the active record one day prior to this date, making the new record effective.