Summary

The IRD introduced a new tax code for Non-resident Seasonal Workers (NSW). These non-resident employees work in New Zealand for more than 6 months and were previously taxed as residents.

• Workers with Tax code = NSW are taxed at a flat rate of 15% + ACC Earner’s Premium, and are not required to file income tax returns.
• You can assign Tax code = NSW only to employees with Resident = "No".

If you model Tax code or Resident field values from one employee record to another, then PayGlobal cannot run validation checks so you will have to manually determine whether these values are correct.

Non-resident Seasonal Workers:

• Cannot enroll in KiwiSaver because they are not New Zealand residents.
• Are not subject to Student Loan repayments.
• Can make Child Support payments in the same way as other employees.
• Can use Payroll Giving (donations through payroll).

  Note: Only Recognised Seasonal Employers with an Agreement to Recruit can have employees with a tax code of NSW.