Exclusions From IR348 Employer Monthly Schedule

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.

School Students

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.

A school student as defined above

Does not have to complete an IR330 tax code declaration.
You are not required to deduct PAYE deductions.
Are not to be included on your employer monthly schedule.
You are still required to keep wage records for them.

Contractors or Companies

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.

Directors Drawings

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.

To exclude an employee from the IR348 Employers Monthly Schedule, select Modify Employee Details then Personnel
Click Exclude From IR348 as circled in yellow.

Ace Payroll modify employee details with exclude from IR348 highlighted

Then select whether to exclude or include the employee on the schedule as shown below.

Ace Payroll exclude from IR348 entry screen

At this time you may wish to set the employee tax code to NIL
Note that if any tax is deducted from the employee during the month, Ace Payroll includes the employee on the IR348 irrespective of the above settings.

Printed IR348 Employer Monthly Schedules

Twice Monthly PAYE
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Employees With No Payments
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IRD Returned IR348
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New Employees & Printed Monthly Schedules
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IR348 Tips and Traps
Miscellaneous tips and traps relating to the printed IRD Approved IR348 form more..

Exclusions From IR348 Employer Monthly Schedule
If you do not deduct tax from an employee, contractor or company, the IRD does not want the details shown on the IR348 more..

Monthly Dealings With The IRD
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Payroll Giving - Overview & Setup
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Alphabetical Index
The Ace Payroll alphabetical index provides links to all documentation more..

Ace Payroll FAQ Contents
All the most common Ace Payroll questions grouped by categories in a short table of key words more..

Ace Payroll Frequently Asked Questions
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