Get the right employee tax code

The tax code your employee uses depends on their work type and situation. Employees need to give you a completed Tax code declaration - IR330.

If your employee does not give you a completed IR330, you need to deduct PAYE at the non-notified rate of 45% plus ACC earners’ levy. Use ND as the tax code on the Employment Information return and the PAYE calculator.

If we notice that one of your employees is using the wrong tax code, we’ll write to you. This letter will tell you what their code should be. You’ll need to start using the correct code and deduct tax based on that code.

If your employee thinks they are already on the correct tax code, please get them to call us. We will discuss their situation with them and let them know their correct tax code. If your employee’s tax code should be different, they will give you a new IR330. Use the tax code on the new IR330.