Adding or Removing IRD Debt

If you receive a letter from IRD advising you to start making deductions from an employee's salary or wages you will need to enter this into the Thankyou Payroll system as soon as possible.

The letter could either be about beginning deductions or stopping them.

Starting deductions of amounts owed to Inland Revenue

IRD debts need to be loaded into an active timesheet. If you already have an active pay on your dashboard you can use this, otherwise you will need to create a new pay and add the person specified in the letter to that pay.

Once a pay is loaded, go to the specified person's timesheet.

Add a new line to the pay week with the pay type IRD debt[+].

Enter the total debt amount to that line in any box.

Once you have clicked update and save you will see that the IRD debt has been added to the pay summary (3).

You can use that timehseet as normal and add any other rows you need, but you must leave the IRD debt line there for this to process. The system will automatically calculate the correct amount to deduct from the pay each pay period, it will not try and deduct the full amount unless it is small.

 

Removing a Debt

Removing an IRD debt is very similar to adding one.

If there is already a Pay on the Dashboard with hours in it, click on the timesheet of the person named in the letter and you should see the IRD debt in the Pay summary box (shown below, No 3).  If there is no Pay on the Dashboard you can "create a new pay", turn on the employee then go to the timesheet.

You will need to load a line for standard pay (1) and then click "update and save" (2), you should then see the IRD debt (3).  Now follow the above instructions for loading.

If it does not show when hours are entered then the debt has already been paid off or has been removed.

If there is an IRD debt there then you will need to add together the two amounts (in this example, 22.36+111.89=134.25).  This is the amount you will need to enter into the timesheet as a negative (4). Do not use commas in the number.

Click "Update and save" (5), now the debt will not show in the Pay Summary.

You can use the timesheet as normal, but you must leave the IRD debt line in the timesheet for it to process. Once the pay has gone through you will see that future pays have no IRD debt.

If you have any questions about these processes you can contact Thankyou Payroll and the helpdesk team will be happy to help.

0800 895 146

help@thankyoupayroll.co.nz