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Deductions – IRD Arrears
The Inland Revenue Department (IRD) will send a deduction notice to you when an employee has IRD Arrears that they need to pay. If you receive a deduction notice, you need to deduct the amount shown in the notice/letter ‒ before you make any further payments to the taxpayer ‒ and pay the money to Inland Revenue
.
To set up an IRD Arrears deduction, you will first need to setup the bank account the money is to be paid to.
Go to the employee file and then to "Bank Accounts".
Click the Add button
Then set the account number up but don’t enter an amount that will be from the deduction which will dictate the amount that will be paid to the IRD Arrears bank account.
In the Code field you need to enter ARR. The Particulars field will remain blank.
To set up an IRD Arrears deduction, you will first need to setup the bank account the money is to be paid to.
Go to the employee file and then to "Bank Accounts".
Click the Add button
Then set the account number up but don’t enter an amount that will be from the deduction which will dictate the amount that will be paid to the IRD Arrears bank account.
In the Code field you need to enter ARR. The Particulars field will remain blank.
Once you have setup the bank account you can then setup the deduction in Pay Run Inclusions.
Click Add in Deductions.
Following are the IRD Arrears setup instructions,
- Click on 'Add'.
- Select the "IRD Arrears" deduction category from the drop-down list.
- Choose the bank account you previously setup for the IRD arrears
- Enter the date this inclusion is to commence.
- Enter the total amount owing to IRD
- Click on 'Save'.
All the other fields are pre-filled for you so you just need to ensure the Payment reference contains the correct IRD number for the employee.
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