Schedular Payments FAQ’s
Our most frequently asked questions about Schedular Payments. If you can not find the answer to your question here, then please call our CEC on 0508 462 427.
How do I need use Schedular Payments through Manawanui?
If you are a contractor, to opt in you need to get the agreement of your payer, and your payer must also use the Manawanui Client Web Portal. Once you have their agreement you’ll need to put it in writing and make sure your payer has a copy. You can download a Schedular Payments agreement template. 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
What do I need to give to my payer?
You’ll need to give your payer a completed IR330C. This tells your payer what tax rate you’ve chosen.
Does this effect my Student loan, KiwiSaver and ACC levies?
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.
What tax rate do I use?
You can choose to use the standard tax rate for your type of work shown on page three of the IR330C or pick your own rate, provided it’s not less than the minimum 10%, or 15% if you have a temporary entry class visa.
The IRD’s Tax rate estimation tool (for contractors) can help you choose a rate. You’ll find this on the IRD website www.ird.govt.nz under “Work it out”.
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.
Do I need to file an income tax return?
Generally, you must file an income tax return at the end of the tax year if you receive schedular payments.
You may be able to claim expenses against your income when you file your return. You’ll need to attach a Financial statement summary (IR10) or a copy of your financial records that shows your total income and expenses.
Can I change the rate I’ve chosen?
If your circumstances change you can choose a new tax rate by completing a new IR330C and giving it to your payer.