Summary

If a non-resident employee does not submit an IR330, they do not have an IRD number, so you set their Tax code to "ND".

Note: The IRD has confirmed that this type of employee does not use Tax code = "WT".

However, employees with Tax code = "ND" are automatically taxed at the non-declared maximum rate, and in in some cases, this rate is not correct. For example, a non-resident entertainer's tax rate would be 20%.

Process

Use the following process for such employees, which will also allow the EMS to correctly report them as having Tax code = "ND".

1. Set up the non-resident employee with IRD number = "000-000-000" and Tax code = "ND". Their Tax rate field will be disabled.
2. Create a permanent Taxation override transaction for the employee that uses the required taxation rate. For example, Override amount = "20.00" and Override type = "%". This value will automatically override the non-declared rate.