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ACC will deduct PAYE from any loss of earnings compensation they pay to your employees.

Three situations can occur if you pay an employee who has been injured at work.

  • If an employee is injured at work and you pay them until they start receiving compensation, deduct PAYE using their tax code.
  • If you subsidise an employee who is receiving compensation, deduct PAYE from the extra payment you make using the secondary tax rates.
  • If you pay an injured employee's salary/wages and ACC reimburses you, deduct PAYE using the employee's tax code.
Last updated: 28 Apr 2021
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