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IRD arrears deductions (fixed amount)


There may be times when you are directed to deduct a fixed amount from your employee's pay for Inland Revenue Arrears. This page will show you how to set up this within Payroll, along with an accumulator to track the balance outstanding.

This is different to the standard percentage based IRD Arrears deduction. For assistance in setting up a standard deduction, refer to our support note IRD arrears deductions (standard percentage based).


1. Create a new accumulator
  1. Go to the Payroll menu and choose Maintain Accumulators.
  2. Click New.
  3. Enter the Accumulator Code and Description as shown in the following example, where the code and description incorporate IRD and the employee's initials.
  4. Click OK.
2. Create a new pay code
  1. Go to the Maintenance command centre and click Maintain Pay Codes.
  2. Click New.
  3. As the Pay Code Type, select Post-Tax Deductions.
  4. Enter a Pay Code and Pay Code Description that match the new accumulator.
  5. Click OK.
  6. Click the newly created pay code in the General tab.
  7. Select the option Allow rate to be modified when entering pay details.

    Leave the Pay Code rate is based on employee's payrate option as None as shown below.


  8. Click the Other tab.
  9. Select Include in Direct Credit Schedule and enter the required Bank account number and reference details for re-payments to be made, as advised by the Inland Revenue.
3. Attach the Accumulator to the Pay Code
  1. From within Maintain Pay Codes, click the Accumulator tab of the new pay code.
  2. In the Accumulate quantities to field, select the newly created Inland Revenue Arrears accumulator and leave the default option Decrease Accumulator balance.

4. Add new pay code to employee's Pay/Default totals
  1. Go to the Maintenance command centre and click Maintain Employees .
  2. Click Select Employee.
  3. Click the employee who is repaying the IRD Arrears then click OK.
  4. Click the Pay Defaults/Totals tab, then click New.
  5. Select the pay code created in "Create a new accumulator" step above, for example IRDSJM, then click OK.
  6. Enter the required amount to be deducted each pay in the Quantity column. This ensures the accumulator value decreases correctly.
  7. Enter 1.00 in the Rate column and leave the Type as Variable.
5. Attach the Accumulator to the employee
  1. From within Maintain Employees , click the employee's Accumulators tab.
  2. Click New.
  3. Select the accumulator created in "Create a new accumulator" step above, for example IRDSJM , then click OK.
  4. In the Current Balance column, enter the balance of the accumulator—in other words, the IRD Arrears outstanding.
  5. Optional: select the option Show on Payslip.

The Accumulator is now ready to automatically deduct the required repayments and keep a record of any payments made and the balance outstanding.

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