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Tanda Payroll NZ: Deductions Explained

Create, assign, and view deductions on pay runs.

Updated this week

This help guide will explain how to configure and apply deductions using Tanda Payroll NZ, including information about what deductions are, how to create deduction types, how to apply deductions to employees, and how deductions appear on pay runs and payslips.


What are Deductions?

Deductions are a post-tax deduction from an employee’s take-home (gross) pay. To be eligible, employees must have completed an IR330 - Tax code declaration form. The tax code your employee uses will depend on their work type and situation.

If your employee does not submit a completed IR330, you need to deduct PAYE at the 45% non-notified rate.

Common examples of deductions include:

  • Child Support Payments

  • PAYE

  • Student Loan Repayments

  • KiwiSaver Employee Contributions

  • Repayments of purchases made through the company

To learn more about deductions, see this resource from the Inland Revenue Department (IRD).


Configuring Deduction Types

To configure different deduction types in your account, navigate to Payroll > Payroll Settings > Deduction Types > + New.

From there, you should see the following screen:

To create a new deduction type, name it (e.g. ‘Child Support’), select the appropriate journal account (if you haven’t already, configure these via Payroll > Payroll Settings > Journal Setup (Accounts) > + New) and category, and click CREATE.

If you want to provide bank details to have deductions paid directly into bank files, expand the ‘Bank details’ section and enter the appropriate information, including the account name and number.


Applying Deductions to Employees

Once configured, payslips will automatically populate with Deductions that have been added to employees' profiles. Once a Deduction Type has been created (following the steps above), you can add it to employees’ profiles by following these steps:

1. Navigate to Payroll > Staff.

2. Refer to the ‘Deductions’ row of the table.

3. Click on an employee from the list.

4. Locate the Deductions heading and click +Add.

5. Input the appropriate details, including:

  • The payroll deduction type.

  • Whether this is a fixed amount deduction or a deduction as a percentage of the employee’s income.

  • If you want to cap the total deduction amount, enter a Total Amount To Be Paid. If you enter a value in this field, Tanda will stop applying the deduction once that amount is reached. As each pay run is posted, the "Amount paid so far" total displayed here will update.

  • Dates that the deduction will apply from or to (optional).

Click CREATE to save your changes.

Unless otherwise specified (by setting ‘to’ or ‘from’ application dates or setting a deduction cap), the deduction will now apply to the specified employee indefinitely.


How Deductions Appear on Pay Runs

After assigning deductions to the relevant employees, they will appear on their Pay Runs.

To view deductions on an employee’s Pay Run:

  1. Navigate to Payroll > Run Payroll.

  2. Select an employee from the list.

  3. Scroll to the ‘Deductions’ section.

If necessary, you can also manually add or delete deductions from an employee’s pay run from this view. To do so, click the +Add or DELETE buttons. If you attempt to delete a deduction, you will see the following warning asking you to confirm your selection:


How Deductions Appear on Payslips

Admins can also preview each employee's payslip by navigating to Payroll > Run Payroll, selecting an employee from the list, and clicking ‘Preview Payslip File.’

Deductions will appear near the bottom of an employee’s payslip as follows:

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