Where does the reference from the IRD debt letter go in the system?

The letter informing employers to make IRD debt deductions from an employee's pay states a reference to be used. This quick answer will explain the link between this reference and payroll processing.

The reference number provided in the IRD letter is to identify the bank transaction with this employee's debt when paid from a private or business account. So, the employee would use this reference number if they paid the IRD debt from their bank account or through a cash deposit.

When paying this IRD debt through a payroll deduction, the employee's IRD number is linked to the timesheet through their Employee Profile. IRD can thus identify this transaction clearly and the reference number is not needed.