Withholding Tax Payments in NZ - Setup

How to setup withholding tax payments in New Zealand

How to Set Up the creation of .csv file for Withholding Tax Lodgement with IRD

To process withholding tax payments in Accountability and create the requisite .csv file for lodgement with the IRD, there are some initial setups required.

Go to Setup Files/Custom Data

You will need to create 4 Custom Data Types to collect the requisite information to included in the  .csv file ie;

1. NZ Employer IRD Number
2. NZ Payroll Contact
3. NZ Payroll Contact Phone Number
4. NZ Payroll Contact Email

Each of the Custom Data Types are created as TEXT Custom Data and linked to a specific Office

Having created the Custom Data Types you will need populate each one with the relevant information. Refer example below for NZ Employer IRD Number

How to setup Withholding Tax Rates and link these to Suppliers? 

To create Withholding Tax Rate go to Setup Files/Withholding Tax Codes

Click CREATE  A NEW WITHHOLDING TAX CODE and enter the following information in the relevant fields 

• Code
• Description
• WHT%
• Output WHT GL account
• Input WHT GL account
• Check Box for Use for INPUT - withholding Tax in NZ relates to specific payments so will only be applicable for IINPUT transactions

To link a Withholding Tax Code to a Supplier, open up the Supplier record and in the field DEFAULT WHT CODE select the relevant WHT Code