If the advised rate is 20% and this includes the ACC levy, enter the Tax Rate as 20% minus the ACC levy. So with an ACC levy of 1.39%, you'd enter 18.61%.
Payroll will automatically add the required ACC levy to the employee's tax to bring the total back to the required 20%.
Continue processing your employee's pay as normal.
What if the Special Tax Code (STC) rate I have been advised is 0%?
Due to the ACC levy automatically adding to the rate entered for the Special Tax Code (STC), if the STC rate advised by the IRD is 0%, you'll need to enter the current ACC levy rate as the STC rate. For example, with an ACC levy of 1.39%, you'd enter -1.39% (0% minus 1.39% ACC levy).
An STC of 0% will result in no tax (PAYE) being deducted.
You'll be able to continue processing your employee's pay in the normal way.
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