What: It is now compulsory for liable parents who are new (or returning) to child support to have their child support payments deducted from their salaries or wages. Payment of child support by employer deductions does not apply to parents who were already paying child support prior to 26 October 2021, unless they miss future payments and fall into debt.
Why: To simplify child support. The aim of the change is to help paying parents get their payments right from the start and to ensure children who qualify to receive child support, receive it.
What you need to do:
- Deduction notices will be sent electronically, via myIR, or by paper to liable parents and their employers. These notices tell you everything you need to know about deducting child support, including which employee(s) you’re required to make deductions for, when you need to start making deductions and the amount to deduct from each pay.
- You need to make child support deductions for all employees who are newly liable or returning child support customers. You may need to adapt your processes to start making these deductions.
- File Employment Information forms on time. Make sure they’re completed correctly, including making sure the correct pay date is recorded. As soon as a person is no longer employed by your business, provide Inland Revenue with a ceased code.
Deductions from salary and wages(external link) — Inland Revenue
Credit: https://www.business.govt.nz/news/law-changes-round-up/
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