Adding a student loan special deduction rate (New Zealand)
At times IRD may issue a Special Deduction Rate (SDR) or Special Tax Code (STC) certificate for a Student Loan rate to be used instead of the standard Student Loan rate for a specified period.
The certificate should specify the required tax code, rate to be used and the period the certificate is for. If there is any doubt about the wording of the certificate, contact Inland Revenue for clarification.
If a Special Deduction Rate (SDR) certificate has been issued by IRD, to apply these details to the employee the following will need to done:
- In the Employee Details tab of the Employee Maintenance screen:
- Change the Tax Code of the employee to the code specified on the certificate
In the Student Loan Rate field, enter the rate specified on the certificate
When the rate specified by IRD is less than the standard Student Loan Rate, a message will appear advising that this can only be done if a certificate has been received from Inland Revenue - click Yes to this message
- Once the period specified in the certificate has passed, of a new certificate has not been received then the standard Student Loan Rate will need to be re-entered in the Student Loan Rate field so that the correct Student Loan amount can be deducted.
Need more help? You can open the online help by pressing F1 on your keyboard while in your software.
You can also find more help resources on the MYOB Exo Employer Services Education Centre for Australia or New Zealand.