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  • Setting up a student's payroll


 

 

ANSWER ID:3736

This support note describes how to set up a student in Payroll. The setup differs depending on whether the student's expected earnings will be above or below the school child threshold.

School child threshold

A student can earn up to $2340 or $45 per week before they are required to start paying tax.

For example:

  • If student works 3 hours per week at $10 per hour, the total for the year will only be $1560 ($30 X 52 weeks). Therefore no tax will be deducted.
  • If a student works 5 hours per week at $10 per hour, the total for the year will be $2600 ($50 X 52 weeks). This exceeds the threshold, so Payroll will commence to deduct tax for the portion of earnings over the threshold.
Setting up a student (earning under the threshold)
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click New and enter the applicable details for the student.
  3. Click the Employment Details tab.
  4. Select the School Child option but do not enter an IRD number.
  5. Leave the default Tax Code set as ND. Here's our example:
    Image

These earnings will NOT appear on the EMS (Employer Monthly Schedule) as they do not need to be reported.

Setting up a student (earning over the threshold)
  1. Go to the Maintenance command centre and click Maintain Employees.
  2. Click New and enter the applicable details for the student.
  3. Click the Employment Details tab.
  4. Select the School Child option.
  5. Enter the student's IRD number.
  6. Change the Tax Code to MC. This code is specifically for students expected to earn over the school child threshold. Here's our example:
    Image