How do payroll deductions work?

Deductions (definition)

Deductions are a post-tax deduction of an employee’s take-home pay. There are a number of different reasons for deducting money from an employee’s pay which include Student Loan Repayments, KiwiSaver, Child Support, IRD Arrears, Court Fines or repaying a debt owed to the employer. Regardless, an employer must have consent from the employee before making any deductions. In payroll, deductions can be set up as an ongoing or one-off payment.


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