If the rate advised by the IRD includes the Accident Compensation (ACC) levy, deduct the ACC levy before entering the Tax Rate. Check the IRD website for the latest ACC levy rate Example If the advised rate is 20% and this includes the ACC levy, enter the Tax Rate as 20% minus the ACC levy. So if the with an ACC levy is of 1.45%, enter the tax rate as 18.55%. Similarly, if the ACC levy is 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%. |