Child Support Deductions
Child Support Deductions
This guide discusses an employer’s obligation in relation to child support deductions.
Under the Child Support Act 1991 (and its amendments), employees who have financial obligations with
respect to the care of children can have deductions for child support payments taken from their wages or
salary. This Act was introduced for the purpose of determining the amounts and forms of collection of
money from parents who do not live with their children and the custodial parent receives a Work and
Income New Zealand “WINZ” benefit under the Social Security Act 2018, or has applied to the Court for
maintenance order under the Family Proceedings Act 1980.
It is possible for an employee to be paying for child support to both WINZ and the IRD at the same time.
WINZ collects some money owed to it under previous schemes. If you as the employer are making such
deductions (and paying them to WINZ), do not stop doing so on receipt of a Child Support Deduction
Notice from the Child Support Agency (the Agency). WINZ will advise you when those payments should
stop.
The Child Support Agency part of Inland Revenue assesses and collects child support payments. The
payments are administered through the PAYE system. The payments the Agency collects are paid
directly to the parent who has care of the child or to the government if the parent is receiving a benefit.
Employees who make private arrangements for the provision of child support may ask you as their
employer to make deductions payable to the Agency in the same way as mandatory deductions. Where
the employee wishes to change or stop that deduction they are required to provide notice to the IRD of
that.
Child support has priority over any other deductions from an employee’s net pay. This means that other
than PAYE, employers must deduct child support before anything else, such as student loan repayments,
insurances, superannuation and union fees. Child support must be deducted from final pay and holiday
pay on the termination of employment.
It is possible for employers to be asked to make deductions for child support from contractors and
commission agents (non-employees).
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