Special Repayment Rate

Special repayment rates only apply to an employee's secondary income for a maximum of 3 months at a time.

Further Reading: http://www.ird.govt.nz/studentloans/payments/compulsory/salary-wage/repay-spec-ded/

A special repayment rate deduction allows you to to override the employee's Standard repayment amount.

1. Model the standard deduction to create a special rate deduction with a unique Code and Description.

   Note: Ensure that the Code value (such as 712) is greater than the Code for the standard deduction (such as 708) because pay processing uses the student loan deduction with the lowest Code value to make the standard 12% repayments.

2. Ensure that the Details (iii) tab contains the following values:

   Field	Values
   Calculation method	L. Student loan
   Special rate deductions behave the same way as standard deductions: For employees on a main tax code, processing excludes the employee's first $19,084 (annual) or $367 (weekly) of earnings and calculates the repayment on the earnings over the threshold. For employees on a secondary tax code, processing ignores the threshold.
   Deduction class	S. Student loan reduction
   Sub-class	Standard

   

For process details, see Special Repayment Rate Process.

Topic: 37516