How the numbers work: income tax and PAYE

Detailed Example: $75,000 Annual Salary

1. First $15,600 @ 10.5%: $15,600 × 0.105 = $1,638
2. Next $37,900 @ 17.5%: $37,900 × 0.175 = $6,633
3. Next $21,500 @ 30%: $21,500 × 0.30 = $6,450

Total Annual PAYE: $1,638 + $6,633 + $6,450 = $14,721

Detailed Example: $75,000 Annual Salary

1. PAYE: $14,721
2. ACC: $1,312.50
3. KiwiSaver: $3,000

Total Deductions: $19,034

Detailed Example: $75,000 Annual Salary

1. Gross Monthly: $75,000 ÷ 12 = $6,250
2. PAYE: $14,721 ÷ 12 = $1,227
3. ACC: $1,312.50 ÷ 12 = $109
4. KiwiSaver: $3,000 ÷ 12 = $250

Net Monthly: $6,250 - $1,227 - $109 - $250 = $4,664

Student Loan Repayments

1. Annual income: $55,000
2. Repayment threshold: $24,128
3. Income above threshold: $55,000 - $24,128 = $30,872
4. Student loan deduction: $30,872 × 12% = $3,705

Annual repayment: $3,705 ($309/month or $71/week)

ACC Earners' Levy Details

1. Example: $150,000 income
2. Maximum earnings: $156,641
3. ACC levy: $156,641 × 1.75% = $2,741.22

🔢 Real-World Examples

1. PAYE Tax Calculation:
2. First $15,600 @ 10.5% = $1,638
3. Next $34,400 @ 17.5% = $6,020
4. Total PAYE: $7,658
5. ACC Levy:
6. $50,000 × 1.75% = $875
7. Total Deductions:
8. PAYE: $7,658
9. ACC: $875
10. KiwiSaver: $0

Net Annual Income: $50,000 - $8,533 = $41,467

🔢 Real-World Examples

1. Gross Monthly: $4,167
2. PAYE: -$638
3. ACC: -$73

Net Monthly: $3,456

🔢 Real-World Examples

1. Total tax: $7,658
2. Effective rate: $7,658 ÷ $50,000 = 15.3%

🔢 Real-World Examples

1. PAYE Tax:
2. First $15,600 @ 10.5% = $1,638
3. Next $37,900 @ 17.5% = $6,633
4. Next $11,500 @ 30% = $3,450
5. Total PAYE: $11,721
6. ACC Levy:
7. $65,000 × 1.75% = $1,137.50
8. Student Loan Repayment:
9. Income above threshold: $65,000 - $24,128 = $40,872
10. Repayment: $40,872 × 12% = $4,905
11. KiwiSaver (3.5%):
12. $65,000 × 3.5% = $2,275
13. Total Annual Deductions:
14. PAYE: $11,721
15. ACC: $1,137.50
16. Student Loan: $4,905
17. KiwiSaver: $2,275

Total: $20,039

1. Gross: $2,500
2. PAYE: -$451
3. ACC: -$44
4. Student Loan: -$189
5. KiwiSaver: -$87.50

Net: $1,728

1. PAYE Tax:
2. First $15,600 @ 10.5% = $1,638
3. Next $37,900 @ 17.5% = $6,633
4. Next $24,600 @ 30% = $7,380
5. Next $41,900 @ 33% = $13,827
6. Total PAYE: $29,478
7. ACC Levy:
8. $120,000 × 1.75% = $1,752
9. KiwiSaver (6%):
10. $120,000 × 6% = $7,200
11. Total Deductions:

$29,478 + $1,752 + $7,200 = $38,430

1. PAYE only: $29,478 ÷ $120,000 = 24.6%
2. Including ACC: ($29,478 + $1,752) ÷ $120,000 = 26.0%

1. Sarah's contribution: $7,200
2. Employer contribution (3.5%): $4,200
3. Government contribution: $260.72

Total KiwiSaver: $11,660.72/year

1. PAYE calculation:
2. First $15,600 @ 10.5% = $1,638
3. Next $29,400 @ 17.5% = $5,145
4. Total PAYE: $6,783
5. ACC: $45,000 × 1.75% = $787.50

Net from primary job: $37,430/year

1. PAYE: $15,000 × 30% = $4,500
2. ACC: $15,000 × 1.75% = $262.50

Net from secondary job: $10,238/year

1. Total gross: $60,000
2. Total PAYE: $6,783 + $4,500 = $11,283
3. Total ACC: $1,050

Combined net: $47,667/year ($3,972/month)

1. First $15,600 @ 10.5% = $1,638
2. Next $37,900 @ 17.5% = $6,633
3. Next $6,500 @ 30% = $1,950
4. Correct PAYE: $1,638 + $6,633 + $1,950 = $10,221
5. Actual PAYE paid: $11,283

Expected refund: $11,283 - $10,221 = $1,062

1. First $15,600 @ 10.5% = $1,638
2. Next $26,400 @ 17.5% = $4,620
3. Total PAYE: $6,258
4. ACC: $42,000 × 1.75% = $613

Net without IETC: $35,129

1. PAYE before IETC: $6,258
2. IETC annual credit: -$520
3. Net PAYE: $5,738
4. ACC: $613

Net with IETC: $35,649 ($2,971/month)

1. Annual benefit: $520
2. Weekly benefit: $10
3. Fortnightly benefit: $20

1. Gross: $1,615
2. PAYE (with IETC): -$221 (instead of $241)
3. ACC: -$24

Net: $1,370 (vs $1,350 without IETC)

How Progressive Tax Works

1. First $15,600 at 10.5% = $1,638
2. Next $37,900 ($15.6K-$53.5K) at 17.5% = $6,632.50
3. Last $21,500 ($53.5K-$75K) at 30% = $6,450
4. Effective Rate: $14,720.50 ÷ $75,000 = 19.6%
5. Marginal Rate: 30%

Total Tax: $14,720.50

Marginal vs Effective Tax Rate

1. Earning $75,000 → 30% marginal rate
2. $1,000 bonus → pays $300 tax
3. Take home: $700

PAYE (Pay As You Earn)

1. Annual salary: $65,000
2. Fortnightly gross: $2,500
3. Annual tax: $11,720.50
4. Fortnightly PAYE: $451
5. Fortnightly net: $2,049

Self-Employed Tax

1. Residual income tax >$5,000 → pay provisional tax
2. Three payments: 28 Aug, 15 Jan, 7 May
3. Based on prior year income + 5%

Self-Employed Tax

1. 2024 profit: $80,000, Tax: $17,020
2. 2025 provisional tax: $17,020 + 5% = $17,871
3. Three payments: $5,957 each

Reducing Tax Legally

1. One earner $120K (tax $31,970) + partner $0
2. vs Both earn $60K (tax $11,020 each = $22,040)
3. Savings: $9,930 through partnerships/trusts

Reducing Tax Legally

1. Donate $5,000 → tax credit 33.33%
2. Reduces tax by $1,667

Example 1: Employee $55,000 Salary

1. $0-$15,600 at 10.5% = $1,638
2. $15,601-$53,500 at 17.5% = $6,632.50
3. $53,501-$55,000 at 30% = $450
4. Take-home: $46,279.50
5. Monthly net: $3,857

Total Tax: $8,720.50

Example 2: High Earner $220,000

1. $0-$15,600 at 10.5% = $1,638
2. $15,601-$53,500 at 17.5% = $6,632.50
3. $53,501-$78,100 at 30% = $7,380
4. $78,101-$180,000 at 33% = $33,627
5. $180,001-$220,000 at 39% = $15,600
6. Take-home: $155,122.50
7. Effective rate: 29.5%

Total Tax: $64,877.50

Example 3: Second Job Income

1. Each job withholds as if only income
2. Main: $6,783 withheld
3. Second: $1,575 withheld
4. Total withheld: $8,358
5. Actual tax on $60K: $10,220.50

Owe IRD: $1,862.50 at year end!

Example 3: Second Job Income

1. Main (M code): $6,783
2. Second (SB code): $4,500 (30% withheld)
3. Total: $11,283
4. Small refund of $1,062.50

Example 4: Self-Employed Business

1. Revenue: $120,000
2. Expenses: $35,000
3. Taxable profit: $85,000
4. Tax: $17,927.50
5. Less provisional paid: $17,000

Terminal tax: $927.50

Example 5: Bonus Impact

1. Marginal rate: 33%
2. Tax on bonus: $10,000 × 33% = $3,300
3. Take-home bonus: $6,700
4. Total income: $105,000
5. Total tax: $24,527.50

🌍 Real-World Tax Scenarios

1. Salary: $85,000
2. Tax: $17,927.50
3. KiwiSaver (3%): $2,550
4. Take-home: $64,522.50

🌍 Real-World Tax Scenarios

1. Contract rate: $95,000 (gross)
2. Business expenses: $8,000
3. Taxable income: $87,000
4. Tax: $18,587.50
5. ACC levy: $1,500
6. Take-home: $66,912.50

Extra: $2,390/year

🌍 Real-World Tax Scenarios

1. Part-time earnings: $18,000
2. Tax: $2,058
3. Student loan repayment (12%): $480
4. Take-home: $15,462
5. Monthly: $1,289

1. Rental income: $15,000
2. Rental expenses: $8,000
3. Net rental income: $7,000
4. Total income: $75,000 + $7,000 = $82,000
5. Tax on salary: $14,720.50
6. Tax on rental (30% then 33% marginal): $2,217

Total tax: $16,937.50

A Typical Payslip Walkthrough

1. Hours worked: 20
2. Hourly rate: $20.00
3. Gross pay: 20 × $20 = $400.00
4. Plus 8% holiday pay (if pay-as-you-go): +$32.00
5. Total gross: $432.00
6. Less PAYE (10.5%): -$45.36
7. Less ACC Earners' Levy (1.75%): -$7.56
8. NET PAY: $379.08

Example 1: 16-year-old on Starting-Out Wage

1. Gross weekly: 12 × $19.16 = $229.92
2. Plus 8% holiday pay (casual): +$18.39
3. Total gross: $248.31
4. PAYE (10.5%): -$26.07
5. ACC Earners' Levy (1.75%): -$4.35
6. Net weekly: $217.89
7. Annual gross (52 weeks): about $12,910
8. Fully within the 10.5% bracket - no surprise bill at year-end

Example 2: Adult vs Starting-Out Rate Difference

1. Starting-Out rate: $19.16 × 12 hrs = $229.92 gross
2. Adult rate: $23.95 × 12 hrs = $287.40 gross
3. Difference per week: $57.48 gross
4. Over 12 months: about $2,989 extra gross
5. After PAYE and ACC: about $2,620 extra in the hand

Example 3: KiwiSaver Join at 16 vs at 18

1. Teen A joins at 16, contributes 3.5% of $15K = $525/year
2. Teen B joins at 18, same amounts
3. At age 65 (assuming wages grew 2.5%/yr): Teen A about $140K, Teen B about $125K
4. Difference from 2 extra years of contributions: about $15,000

Real-World Story: The Two-Jobs Tax Shock

1. Cafe income: $22,000
2. Pool income: $8,500
3. Total: $30,500
4. Correct PAYE owed: about $4,019 (10.5% on first $15,600 plus 17.5% on $14,900)
5. PAYE actually withheld (two M codes): about $3,203 (10.5% on each job's first $15,600)
6. Shortfall at year-end: $816 owing to IRD

Real-World Story: The Public Holiday Time-and-a-Half Win

1. What he was paid: 8 × $19.16 = $153.28
2. What he should have got: 8 × $28.74 (1.5x) = $229.92
3. PLUS a day in lieu (8 hours × $19.16 = $153.28)
4. Correct total: $383.20
5. Shortfall: $229.92

The three steps

1. Step 1: Complete the application online in myIR, or fill in the paper IR595.
2. Step 2: Take your original documents to be verified. Online applicants have 20 days to visit an AA Driver Licensing Agent (an AA Centre, not an Auto Centre). Paper applicants can also use an Inland Revenue office.

Step 3: Receive your IRD number. Online applicants get it within 10 working days, paper applicants within 12 working days after verification.

Applying from overseas as an offshore person

1. Complete the IR742 and gather your documents. Any document not in English needs a certified translation.
2. Email the form and scanned documents to offshore@ird.govt.nz.

Inland Revenue aims to process offshore applications within 20 days. Allow another 20 days if you ask for your number to be posted.

👥 Real-world New Zealand examples

1. She applies online in myIR using the New Zealand resident route.
2. Primary document: her full New Zealand birth certificate. Secondary document: her new learner driver licence.
3. She takes both originals to an AA Centre within 20 days to verify her identity.

Her IRD number arrives within 10 working days, in time to give her employer before her first payday.

👥 Real-world New Zealand examples

1. Within 2 months of the birth they register Diya online through SmartStart.
2. In the same SmartStart process they tick the option to apply for Diya's IRD number.
3. Registration and the IRD number application are both free. They pay only for a printed birth certificate.

Diya has her own IRD number, and Best Start can be paid against it.

👥 Real-world New Zealand examples

1. She applies online through myIR using the new arrival route (there is no paper form for this).
2. She enters her passport details, her Immigration New Zealand application number, and her most recent Spanish tax number.
3. Inland Revenue checks her identity with Immigration New Zealand.

Her IRD number arrives by email within 2 days, or by post within 10 days.

1. As an offshore person he completes the paper form IR742.
2. He gathers his passport, proof of his London address, his UK tax identification number, and evidence of why he needs the number.
3. He proves a fully functional New Zealand bank account using a statement showing his name, account number, and a deposit and a withdrawal of different amounts.
4. He emails the form and scanned documents to offshore@ird.govt.nz.

Inland Revenue aims to process it within 20 days.

What to Say

1. "Thank you for the offer, I am really looking forward to working here."
2. "From my research, and given the skills and experience I bring, I would be more comfortable with a salary around $XX."

Then pause, and let the employer respond.

A Simple Way to Estimate the Take-Home of a Rise

1. 1. Work out which tax band(s) the rise falls into.
2. 2. Apply the marginal tax rate to each part of the rise.
3. 3. Add the 1.75% ACC levy on the rise (if under the $156,641 cap).

What is left is roughly what lands in your account. Our Pay Rise Calculator and Take-Home Pay Calculator do the maths for you.

🔢 Worked NZ Examples

1. $75,000 to $78,100 = $3,100 taxed at 30% = $930
2. $78,100 to $85,000 = $6,900 taxed at 33% = $2,277
3. Income tax on the rise: $930 + $2,277 = $3,207
4. ACC levy on the rise: $10,000 x 1.75% = $175
5. Total deducted from the rise: $3,207 + $175 = $3,382

Take-home from the $10,000 rise: $6,618 a year (about $551 a month)

🔢 Worked NZ Examples

1. Income tax on the rise: $6,000 x 30% = $1,800
2. ACC levy on the rise: $6,000 x 1.75% = $105
3. Total deducted: $1,800 + $105 = $1,905
4. Take-home from the rise: $6,000 - $1,905 = $4,095 a year

That is about $341 more a month, or roughly $157 more a fortnight

🔢 Worked NZ Examples

1. Offer A: $80,000 base, plus employer KiwiSaver of $80,000 x 3.5% = $2,800. Total value $82,800.
2. Offer B: $82,000 package includes the 3.5% employer KiwiSaver.
3. Offer B base: $82,000 / 1.035 = $79,227, with employer KiwiSaver of about $2,773.

Offer A pays about $773 more base salary and $800 more in total value, despite the smaller headline.

1. Uplift negotiated: $78,000 - $72,000 = $6,000 (all in the 30% band)
2. Income tax on the uplift: $6,000 x 30% = $1,800
3. ACC levy on the uplift: $6,000 x 1.75% = $105
4. Take-home from the uplift: $6,000 - $1,905 = $4,095 a year

Over five years that is at least $20,475 more in the hand, before any future percentage rises compound on the higher base

The late payment penalties

1. Step 1, the day after the due date: a 1% penalty on the unpaid tax.
2. Step 2, on the seventh day after the due date: a further 4% penalty on the tax still remaining, including the penalty already added.
3. Step 3, monthly thereafter: a 1% penalty each month on what remains. This step does not apply to income tax, provisional tax, GST, or Working for Families overpayments.

For income tax and GST, the penalties stop after step 2.

Use of money interest

1. It is calculated daily. Paying a debt off part way through a month reduces the interest from that day, so there is no reason to wait for a month end.
2. It does not compound. Interest is not added to the balance and then charged interest on in turn. This is the single biggest difference from a credit card.
3. It is not included when penalties are calculated. Interest accrued does not increase the base that a penalty is applied to.

A tax debt grows in a straight line, not a curve.

A worked example

1. Tax owing: $5,000.00
2. Day after the due date, 1% penalty: $5,000.00 x 1% = $50.00 . Balance $5,050.00.
3. Seventh day, 4% penalty on the balance: $5,050.00 x 4% = $202.00 .
4. Total penalties: $50.00 + $202.00 = $252.00 . No further monthly penalty, because this is income tax.
5. Interest for one year: $5,000.00 x 8.97% = $448.50 .

After one year: $5,000.00 + $252.00 + $448.50 = $5,700.50 . The year has cost $700.50, or 14.01% of the original tax.

What to do if you cannot pay

1. File the return, on time, even with no money. This avoids the late filing penalty entirely and it is what makes everything else possible.
2. Contact Inland Revenue early, ideally before the due date. An arrangement set up before the debt falls due is treated more favourably than one negotiated after penalties have been applied.
3. Propose an instalment arrangement you can actually meet. A defaulted arrangement is worse than a realistic one, and the amount you offer is negotiable in a way the rules are not.

Filing costs nothing. Silence costs the most.

🔢 Worked examples

1. Employed less than 12 months, so holiday pay is 8% of gross
2. Gross earnings: $28,000
3. Holiday pay: $28,000 × 8% = $2,240
4. Holiday pay already paid: $0

Final holiday pay owed: $2,240

🔢 Worked examples

1. Correct rate: $23.95 per hour
2. Rate paid: $22.00 per hour
3. Shortfall per hour: $23.95 - $22.00 = $1.95
4. Hours worked: 1,200

Wages owed: $1.95 × 1,200 = $2,340

1. Unpaid hours: 2 per week
2. Weeks worked over 4 years (about 48 paid weeks a year): 192
3. Total unpaid hours: 2 × 192 = 384
4. Rate: $30 per hour

Wages owed: 384 × $30 = $11,520

1. Unused annual holidays: 3 weeks at the greater of ordinary weekly pay or average weekly earnings
2. Ordinary weekly pay: $1,200
3. Unused holidays: 3 × $1,200 = $3,600
4. Plus 8% of gross since last anniversary: $30,000 × 8% = $2,400

Final holiday pay: $3,600 + $2,400 = $6,000

🔢 Four worked examples

1. Rate: starting-out wage = $19.16 an hour
2. Hours: 15 a week
3. Weekly gross: 15 times $19.16 = $287.40

Mia earns $287.40 gross a week

🔢 Four worked examples

1. Before six months, starting-out rate: 30 times $19.16 = $574.80 a week
2. After six months, adult rate: 30 times $23.95 = $718.50 a week
3. Weekly pay rise: $718.50 minus $574.80 = $143.70

Over a year that is about $143.70 times 52 = $7,472.40 more in gross pay

🔢 Four worked examples

1. Rate: training wage = $19.16 an hour
2. Hours: 40 a week
3. Weekly gross: 40 times $19.16 = $766.40
4. Adult-rate comparison: 40 times $23.95 = $958.00

The training rate costs Aroha $958.00 minus $766.40 = $191.60 a week while she trains

1. Rate: starting-out wage = $19.16 an hour
2. Hours: 32 a week
3. Weekly gross: 32 times $19.16 = $613.12

Sophie earns $613.12 gross a week on the starting-out rate

The 30 hour fork

1. 30 hours a week on average or less: your nanny is an IR56 taxpayer. They register, calculate and pay their own PAYE by the 20th of the following month. You do not register as an employer.
2. Regularly more than 30 hours a week: you become responsible for PAYE, and for other deductions including student loan repayments and child support where they apply.

The threshold is per employer, so a nanny working for two families can be under it for both.

A worked example

1. Gross weekly pay: 20 x $28.00 = $560.00 .
2. Hours average 20 a week, which is under 30, so the nanny is an IR56 taxpayer . You pay the full $560.00 and they handle their own PAYE.
3. You do not register as an employer, do not file employment information, and do not make deductions.
4. You do provide a written agreement, pay at least the minimum wage, provide leave entitlements, and keep wage and time records for seven years.

Annual gross cost, before leave: $560.00 x 52 = $29,120.00 .

ACC, insurance and the things nobody mentions

1. Your house insurance. Some policies treat a paid worker in the home differently from a guest. A quick call establishes whether you need to tell them.
2. Driving your car. If the nanny will drive your children, confirm your motor policy covers a named or unnamed driver in that role, and check the licence.

Both are five minute checks that are unpleasant to discover afterwards.

The Abatement Zone

1. Income is $68,000, which is $2,000 over the $66,000 threshold
2. Abatement is 13 cents per dollar over: $2,000 x 0.13 = $260
3. IETC reduces from $520 by $260
4. So the IETC at $68,000 is $260 for the year

The Year-End Square-Up Catches It Too

1. During the year, the ME code pays the IETC weekly
2. If you used the plain M code instead, you got nothing weekly
3. After 31 March, IRD checks your income and eligibility
4. If you qualified but missed it, it is added to your refund

A Simple Action Plan

1. 1. Check your annual income is between $24,000 and $70,000
2. 2. Confirm you are not on a benefit, Working for Families or NZ Super
3. 3. If eligible, use the ME (or ME SL) tax code on your main job
4. 4. If income is over $66,000, expect a reduced, abated amount
5. 5. Check your end-of-year assessment to confirm you received it
6. 6. Recheck eligibility whenever your income or support changes

How RWT Works

1. Your account earns, say, $500 of interest
2. The bank deducts RWT at your chosen rate
3. You receive the interest net of that tax
4. The RWT is credited against your tax for the year

How Your PIR Is Worked Out

1. Look at your income over the last two years
2. Apply the PIR test to find your rate
3. Tell your KiwiSaver or managed fund that rate
4. The fund taxes your share of its income at that rate

A Simple Check

1. 1. Make sure every account and fund has your IRD number
2. 2. Set your RWT rate to match your income
3. 3. Work out your PIR and tell each PIE fund
4. 4. Review both after any significant income change
5. 5. Watch for any Inland Revenue notice about your rates

The No-Notification Rate

1. You earn $1,000 of interest in the year
2. Your top tax rate is 30%, so you choose the 30% RWT rate
3. The bank deducts $300 of RWT before paying you
4. You receive $700, with the tax already handled
5. If you had given no IRD number, $450 would have been taken instead

Getting Your PIR Wrong

1. Your personal marginal rate is 33%
2. But the maximum PIR is 28%
3. Your KiwiSaver and managed fund income is taxed at 28%, not 33%
4. That 5 percentage point saving compounds over the years

A Simple Action Plan

1. 1. Give every bank and fund your IRD number
2. 2. Set your RWT rate to match your top tax bracket
3. 3. Set your PIR based on your income over the last two years
4. 4. Remember the PIR is capped at 28%
5. 5. Update both whenever your income changes brackets
6. 6. Check your year-end assessment in case of a square-up

Choosing the Right Secondary Code

1. Main job pays $50,000, second job pays $10,000
2. Total income is about $60,000
3. $60,000 falls in the $53,501 to $78,100 band
4. So the second job uses the SH code, taxed at 30%
5. That matches the 30% bracket the combined income reaches

The Year-End Square-Up

1. During the year, each job deducts tax using its code
2. After 31 March, IRD totals all your income
3. It calculates the correct tax on the combined total
4. If too much was deducted, you get a refund
5. If too little, you get a bill to pay

A Simple Action Plan

1. 1. Put the primary code on your highest-paying source
2. 2. Estimate your total income from all sources for the year
3. 3. Pick the secondary code whose band that total falls in
4. 4. Add SL if you have a student loan
5. 5. If you are consistently over-taxed, apply for a tailored tax code
6. 6. Check your end-of-year assessment for the refund or bill

The Threshold Can Only Be Used Once

1. Your main job claims the low-rate threshold with the M code
2. Your second job sits on top of your main income
3. So its first dollar is already past the low-rate slice
4. The secondary code withholds at the rate that fits that higher band

Why Withholding Is Not the Final Word

1. IRD receives income details from all your employers
2. It calculates the real tax on your combined income
3. It compares that with the total tax withheld
4. You get a refund if too much was taken, or a bill if too little

A Simple Approach

1. 1. Use the M code on your main job only
2. 2. Use a secondary code on the second job that matches your combined income
3. 3. Consider a tailored code if the standard one over-deducts
4. 4. Do not spend the second job's pay as if no further tax is due
5. 5. Check the year-end square-up for a refund or bill

Verifying Your Leave Balances

1. Is annual leave balance increasing appropriately?
2. When leave taken, does balance reduce correctly?
3. Is sick leave accruing and tracking properly?
4. Are public holidays reflected correctly?
5. Report discrepancies to employer/payroll immediately

Understanding Your Net Pay

1. Start with: Gross Pay
2. Subtract: PAYE (income tax)
3. Subtract: ACC earners levy
4. Subtract: KiwiSaver contribution (if enrolled)
5. Subtract: Student loan repayment (if applicable)
6. Subtract: Any other deductions
7. Result: Net Pay (what you receive)

The Journey from Gross to Net Pay

1. 1. Gross Pay: Total income earned
2. ↓
3. 2. PAYE deducted: Income tax withheld at source
4. ↓
5. 3. ACC Levy deducted: Compulsory injury insurance premium
6. ↓
7. 4. KiwiSaver deducted (if enrolled): Retirement savings contribution
8. ↓
9. 5. Student Loan deducted (if applicable): Income-linked debt repayment
10. ↓
11. 6. Other deductions (if any): Union fees, child support, etc.
12. ↓
13. 7. Net Pay: What deposits to your bank account