Employers are required to lodge an IR348 Employers Monthly Schedule with the IRD once a month showing details of all tax deductions made.

If you do not deduct tax from an employee, contractor or company, the IRD does not want the details shown on the IR348.

An increase in the child rebate from 1 April 2006 now allows primary or secondary schoolchildren to earn up to $2,340 a year ($45 a week) before PAYE or withholding tax needs to be deducted.

If you employ primary or secondary schoolchildren, and they earn (or are expected to earn) less than $2,340 a year from all employers, you do not need to deduct PAYE or withholding tax from the payments you make to them.

If no tax deductions are made, you should exclude the child from the IR348 Employers Monthly Schedule.

If you deduct witholding tax from a contractor or company, then the contractor or company must be shown on the IR348.

If no witholding tax is deducted, the contractor or company is to be excluded from the IR348.

Some clients use Ace Payroll to regularly transfer money to a director by way of drawings, with no tax deducted.

In these cases the director takes responsibility for paying their own tax using the provisional tax system.

If no tax is deducted, then the director's drawings are not to be shown on the IR348.

Note that some company directors prefer their drawings to be taxed at source, using the PAYE system. If tax is deducted in this manner, then the payments to the director are required to be shown on the IR348.