You may receive a notice from the Inland Revenue Department (IRD) that an employee owes them money and that you are required to make additional deductions from the employee's pay. The notices will include:
The total amount the employee owes.
How much do you need to deduct from each pay?
Specify that the deduction is in addition to their PAYE and is to be kept separate
To keep the deduction separate from the PAYE, we suggest:
Create a Deduction After Tax in Payroll, Maintenance, General, Additions and Deductions.
Calculated based on either an amount or a percentage. To deduct the lesser of two values, you will need to monitor this, as a Deduction can't perform two different calculations.
Consider a Reducing Balance Deduction, as this allows you to record the total amount owed, reduce the total with each pay processed, and stop the deduction once the total has been reached. For more information, refer to the article How do I create a Reducing Balance deduction?
As you need to include the employee's IRD number in the payment to the IRD, you can make the payment manually through your banking software, especially if you have multiple notices. To use Generate Creditor Payments, you will need to create a separate deduction and creditor record per employee. For more information on setting up Creditors, refer to the article How do I set up the EFT Creditor Payments?