Employees are remunerated with salaries or wages. Contractors are paid with Schedular Payments.
Tax for these has to be deducted by the employer. Employing a spouse would require IRD's approval. Contractor payments might have a GST component to them.
Employer superannuation contribution tax(ESCT) must be deducted from employer contributions to KiwiSaver. Other deductions include student loans and child support.
Acc Earner Levies are included in PAYE but Schedular payments do not contain them.
IR330, Tax Code declaration is the form to be provided to employees remunerated with salaries and wages.
IR330C, Tax rate notification is the form to be provided to contractors.
Employment information must be filled in every time a payment is made to employees. This could be weekly, fortnightly, or monthly.
Allowances that are paid to employees can be both taxable and non-taxable.