IRD Arrears Deductions

  • Sometimes, the IRD writes to an employer telling them to deduct money from an employee and pay it to them, sometimes weekly and sometimes on a monthly basis.
  • The IRD tells the employer the total amount to be paid, the amount per pay period, and the date the deductions must begin.
  • The IRD specifies a bank account.
  • One thing they don't always specify - but that is important - is the amount does not get paid to the IRD with your PAYE.
  • IRD arrears are a seperate payment which must be paid to the IRD seperately from PAYE.

The first step is to ensure there is a deduction set up called IRD Arrears.

It is best to leave the Calculation Method as Fixed Unit Value $1.000 so it can be used in future situations.

If unsure about setting up a new deduction see Allowance & Deduction Setup


The next step is linking the employee to the IRD Arrears deduction.

Enter in the Usual Units field the amount the IRD has asked you to deduct each pay.

If unsure of the process see Allowances & Deductions - Employee Linking


If the IRD has specified a total amount that must be paid, set it up as a reducing balance deduction.

If unsure of the process see Reducing Balance Deductions.

After having entered the total amount that must be paid, Ace Payroll deducts the amount each pay period, and automatically stops when the balance is repaid.


The deduction can be linked to a bank account so it is paid to the IRD automatically.

If unsure of the process see Linking Deductions to Direct Credits.

When linking the deduction ensure the reference details given to you by the IRD are entered.

This ensures the deduction is correctly allocated at the IRD end, and is the reason IRD arrears are paid seperately from PAYE deductions.

  • You are now done.
  • Ace Payroll makes the deduction each period, and pays it to the IRD each time you do your direct credits, including the correct reference details.
  • The deduction is automatically stopped once the total amount is paid.

More on Allowances & Deductions

IRD Arrears Deductions
How to set up IRD Arrears in Ace Payroll for automatic payment to the IRD each pay period more..
Work & Income Deductions
How to set up WINZ Deductions in Ace Payroll for automatic payment to Work And Income each pay period more..
Court Fine Deductions
Court Fine Deductions are easily set up in Ace Payroll for automatic payment to the Ministry Of Justice each pay period more..
Adding A New Allowance or Deduction
Ace Payroll handles an almost unlimited number of allowances and deductions which are easily added more..
Employee Linking
An already existing allowance or deduction is easily linked to a new employee more..
Pay Rate Setup
You can have a maximum of 20 pay rates loaded in Ace Payroll more..
Reducing Balance Deductions
A reducing balance deduction automatically ceases once a set amount has been deducted more..
Direct Crediting Deductions
Employee deductions such as WINZ, Department Of Courts, IRD etc can be linked to a bank account for automatic payment by direct credit each pay more..
Group Linking
An already existing allowance or deduction can be loaded to a group of employees in one go more..
Setting Up Internet Banking
Three easy steps to set up Internet Banking in Ace Payroll more..
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..