Standard and SLSDR rates
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- Last Updated: Monday, 11 November 2019 01:59
Standard Deductions
These are currently at 12% of gross taxable earnings, but maybe lower if an SDR has been requested by the employee and approved in writing by IRD.
In KeyPay a standard deduction is set by simply changing the student loan option L on page 1 of the employee file to a Y. A pop-up will appear showing Has Student Loan=Y plus more options which should be accepted as is. The employee Tax Code will then include SL.
Special Deduction Rate
This simply lowers the standard rate from 12% to a value specified by I.R which could be from zero to 11%. An employee who is currently studying, or is in financial difficulty for some reason, can be on a lower rate. They must re-apply to I.R for this each year and notify IR if their circumstances change.
On the same option screen as above, change the On SLSDR rate to Y. You can then enter the required rate on the next line: SDR % rate = ?%