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