Use
The New Zealand tax program is called from the payroll process tocalculate the tax value for an employee. The program is passed thepayroll area, pay period and year, tax type and a table containing theemployee's tax code, taxable value and payroll frequency. The programcalculates the tax value, updates the employee's tax table and passesthe table back to the payroll process.
Depending on the tax type passed to the program, the program eithercalculates standard tax based on the employee's tax code or calculatesspecial tax based on the tax type passed in. Special tax calculationsare required for most bonuses, for termination payouts and for studentloan deductions.
The tax program calculates PAYE tax, earner premium tax, superannuitantsurcharge tax and student loan deductions.
You can also run the tax program manually.

Precondition
In order to calculate tax, you must have created a record in theTax New Zealand infotype (0313) for the employee which containsthe employee's tax information including the tax code. The payrollprocess reads the infotype and creates a table with tax informationwhich is passed to the tax program.

Selection
If you run the program manually, you enter the following taxinformation in the selection screen:

• Gross pay


• Tax code


• Surcharge code


• Pay frequency


• Tax percent


• Tax type

The tax is calculated and displayed. If you leave the gross pay fieldblank, a full list of tax values is calculated and displayed.

Output
The tax program updates the employee's tax table passed in from thepayroll process with the tax amount and passes it back.