There are two ways to change a tax code in PaySauce. An employer can change the tax code on the employee’s behalf, or the employee can change their tax code by using the PaySauce app.
Making the change as an employer
You may need to change a tax code either because IRD have issued you a letter asking you to change an employee’s tax code or because the employee has asked you to change it for them.
It is important to note that if an employee wants you to change their tax code, they need to complete a tax code declaration for each change. The form is called an IR330 and you can find it on the IRD website here: IR330 Tax Code Declaration.
Once the employee has completed the form and given it to you for your records, you can change their code.
If you need the change to take effect to the current pay run, ensure your employee’s pay is in the ‘data entry’ state. Changes will not apply to pays that you have already calculated.
Change a tax code on your computer
In PaySauce, go to the Employees section on the left hand side menu.
Select the employee’s name from the list and select the ‘Settings’ tab.
Select the ‘tax code’ option on the menu, then use the drop down list to select the correct tax code.
Click ‘save’ in the top right hand corner.
Change a tax code on your mobile
Tap the ‘Employees’ icon.
Tap the employee’s name, the scroll down until you see the tax code.
Tap on the tax code to open the profile settings.
Tap on the tax code to open the list of available codes, then select the new tax code. Choose ‘select’ at the bottom of the screen.
For employees: how to change your own tax code
Employees are able to edit their own tax code as part of their profile settings. This is done in the PaySauce mobile app (employees are not able to log into PaySauce on a computer).
On your mobile (as an employee)
Tap the ‘Account’ icon.
Tap ‘Income and Payments’.
Tap on the tax code to open the profile settings.
Tap on the tax code to open the list of available codes, then select the new tax code. Choose ‘select’ at the bottom of the screen.
Enter a special tax code rate
Some employees are granted special tax deduction rates or ‘tailored tax code’ from IRD for a variety of reasons. If you receive a letter from IRD asking you to enter a tailored tax code, here’s how you can do that in PaySauce.
Follow the instructions in this article to change the tax code and set the code as STC.
Leave the ‘allow additional SL deductions’ option at no unless you need to enable additional repayments over and above a student loan threshold.
Enter the student loan rate as specified. If no student loan rate is specified, enter zero in this field.
Enter the required tax rate in the tax rate field. Note that the letter from IRD will specify a percent that either includes or excludes ACC levy. If the letter specifies a percentage that includes the ACC levy, you will need to deduct the levy rate first and then enter this value in the tax rate field.
ACC Levy rates for each year are published here: ACC levy rates.
For example: IRD specifies a rate in the letter of 26 cents (26%) and this rate includes ACC Levy. The levy rate in the current year is 1.67. The tax rate to be entered in PaySauce would be 24.33 (26 - 1.67 = 24.33).
If IRD specifies that the rate excludes ACC Levy, you do not need to deduct anything - simply enter the value stated in the letter in the tax rate field.
The check box for ‘is main income’ is used for student loan threshold recognition. If you know the employee has a student loan you should turn this on if you know this is the employee’s main source of income.
Save in the top right corner of your screen before saving.