Schedular Payments

If you are a contractor, your payer must have the Schedular Payments service set up and be using the Manawanui Customer Portal. You will need an agreement with them in writing. It's recommended the agreement include:

• Your name and the name of your payer
• Agreement all payments made to you will be treated as voluntary schedular payments
• The period the agreement applies to
• Date of the agreement
• Signatures of you and your payer

You'll need to give your payer a completed IR330C. This tells your payer what tax rate you’ve chosen.

No. Your payer isn't responsible for making these deductions from your schedular payments.
If your total income is over the annual repayment threshold, you'll need to make repayments towards your student loan.
If you want to make payments towards your KiwiSaver, you'll need to arrange this with your scheme provider.
You will still receive an invoice for your ACC levies directly from ACC.

The IRD website can help you choose the right tax rate. If you choose a rate too low for your circumstances, you may not pay enough towards your end of year tax obligation. This may result in you having to pay further tax in a lump sum and be liable for provisional tax.

Generally, you must file an income tax return at the end of the tax year if you receive schedular payments.

All income needs to be taxed and as a self-employed contractor, it is your responsibility to ensure you pay the right amount of tax. As a Schedular Contractor, you have selected Manawanui to make regular Income Tax contributions to Inland Revenue direct from your pay each time you are paid. As a Contractor you must select your income tax percentage which is based off your expected annual income before tax, you can use the Inland Revenue Tax Calculator to get the right percentage, or make an assumption using the table below.