Summary

Child support deductions have Deduction class = "C. Child support". If you regularly deduct child support from an employee's wages, but the amount deducted in a certain pay period is different from the usual deduction, then you would use a child support variation code on the transaction form to explain the difference. This code is communicated to the IR via Payday filing.

Child support variation codes

The Child Support | Details tab | Child support variation code field contains the following options:

• C – Ceased employment

  Used when an employee stops working for the company. The deduction will be made in their last full pay and deducted from any holiday pay due for payment.

• A – Advanced payment

  Used when the deduction was made in advance, such as when an employee will be on a holiday on the next pay day.

• P - Protected earnings

  Used when the full amount of child support is not deducted from an employee’s wages due to net protected earnings.

  Note: When you deduct child support, the deduction must leave the employee with no less than 60% of their nett pay (Taxable gross less PAYE, and before any other payments). This portion is called the employee's "protected earnings".

• S – Short-term absence

  Used when an employee is off work on unpaid leave for a short period of time.

• D – Previously deducted

  Used when the full amount of child support requested from an employee’s wages was not deducted because an advance payment was made in a previous pay.

• O – Other

  Used when the reason for the variation is something other than the above options.

• Blank

  If you leave this field blank, then reports will not display any reason for this variation in the child support payment.

See also

• Child Support (NZ)
• Deductions - Details (iii)