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Question 9a Advise on each taxpayers situation in relation to deduction of tax. For each taxpayer: specify the correct tax treatment for the payment (PAYE,
Question 9a
Advise on each taxpayers situation in relation to deduction of tax. For each taxpayer:
- specify the correct tax treatment for the payment (PAYE, withholding tax, or no tax)
- calculate the amount of deductions (if any)
- specify the net amount paid to the recipient.
Notes:
- None of the individuals has a certificate of exemption.
- Any schedular payment recipient wants to use the standard deduction rate for their type of work.
- Where applicable, your answer should include ACC earners levy, student loan repayments and KiwiSaver employee deductions.
- Do not include KiwiSaver employer contributions.
- Each payment was made in September 2023.
i. Luke received a monthly salary payment of $13,065. His tax code is M SL. His KiwiSaver employee contribution rate is 4%.
ii. Megan receives a $7,390 (gross) redundancy payment. Her wages during the previous four weeks were $4,925.
iii. Erika is a sound and audio engineer contractor based in Wellington who works on television, film, and video productions. She is a New Zealand tax resident. Her total earnings for September 2023 were $8,960.
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