IR348 Tips and Traps

image  ACC payments are not included in the ExAcc column of the IR348

image  Non taxable or reimbursing allowances are not shown anywhere on the IR348

image  IR348 figures do not reconcile with other wage records

image  Difference between IR348 and IR349

ACC Payments Include Earner Premium


The IRD Helpdesk has told us that payments for first week ACC are to be shown in the "ExAcc" column of the IR348. Ace Payroll does not put them in that column. What is wrong?

The only payments not liable to ACC Earner Premium are retiring allowances, redundancy payments, and withholding payments.

All ACC payments, whether paid by an employer or direct from ACC, have tax deducted which includes earner premium.

Accordingly these payments themselves include earner premium, and are not to be shown in the "ExAcc" column of the IR348.

The way Ace Payroll handles these payments is correct - they are shown on the IR348 included with all other payments that include ACC Earner Premium deductions.

Note: As a result of some uncertainty regarding this issue, this answer was sighted and verified as correct by the IRD on 28th August 2002. The answer is still relevant on 18th February 2011.

Handling of Non Taxable Allowances


What about non taxable or reimbursing allowances? Are these shown in the ExAcc column?

Non taxable (reimbursing) allowances are not to appear in the 'earnings not liable for premium' box on the IR348. In fact, they are not recorded at all on the IR348, which is entirely correct.

There has been a bit of confusion about this point, and a few clients have called after being told by the IRD helpdesk that yes, non taxable allowances DO belong in the 'earnings not liable' box!

The IRD in their July 99 edition of Payroll News advise as follows


Therefore, despite what the IRD helpdesk may sometimes say, non taxable allowances should not be shown on the IR348 - and Ace Payroll does not show them.

IR348 Figures Do Not Reconcile With Other Wage Data


The figures on my IR348 do not match my other wage data for the month. Why is that?

The specifications for the Employer Monthly Schedule require each employee's gross wages to be rounded down to the lowest dollar, and the total gross is the sum of each of the employee totals after rounding them.

The totals as reported by all other Ace Payroll reports are exact to the cent.

Statistically, this means the totals showing on your IR348 Employer Monthly Schedule differ from your actual gross wages by around 50 cents per employee.

Difference between IR348 and IR349


When I print the IRD approved IR348, the first page comes out with IR348 printed on it, but the second and subsequent pages say IR349. Why is this?

Ace Payroll does this on purpose - the official IR348 that the IRD sends out is designed this way. IRD specifications require IR348 to be printed on the first page, and IR349 to be on all subsequent pages.

No, we are not totally sure why either!

Ace Payroll fully complies with the IRD specifications, and all others relating to the monthly IR348 printout.

Printed IR348 Employer Monthly Schedules

Monthly and twice monthly PAYE returns
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Employees With No Payments
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IRD Returned IR348
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New Employees & Printed Monthly Schedules
The IRD version of the schedule comes back the following month showing the new employee's IRD number with 'name required' where the name should be more..
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 payment and reporting to Inland Revenue
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Payroll Giving
Payroll Giving allows staff to make charitable donations on a regular basis 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..
Ace Payroll Frequently Asked Questions
All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more..