--- title: Removing an IRD Debt Deduction from an Employee Account description: When IRD advises you to stop making a deduction from an employee's pay, this is how you update the system. --- [Skip to content](https://help.thankyoupayroll.co.nz/en/removing-ird-debt-deduction-from-account#main-content) English Show submenu for translations [More support](https://help.thankyoupayroll.co.nz/en/kb-tickets/new?hsLang=en) ![TYP\_Logo-09-1.png\]](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/TYP_Logo-09-1.png?height=40&name=TYP_Logo-09-1.png) Open main navigation Close main navigation - English Show submenu for translations - [More support](https://help.thankyoupayroll.co.nz/en/kb-tickets/new) - [Visit our website www.thankyoupayroll.co.nz](https://www.thankyoupayroll.co.nz/) [Visit our website www.thankyoupayroll.co.nz](https://www.thankyoupayroll.co.nz/) Kia ora! How can we help you? - There are no suggestions because the search field is empty. 1. [Help Centre](https://help.thankyoupayroll.co.nz/en?hsLang=en) 2. [Debts, Fines, Payments](https://help.thankyoupayroll.co.nz/en/debts-fines-payments?hsLang=en) # Removing an IRD Debt Deduction from an Employee Account ## How to remove a deduction if IRD advises you to stop. *Updated: May 2026* If you receive a letter or notice from IRD advising you to stop making deductions for a debt from an employee here is how to remove it. ![Info - Blue Block (1)](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/CalloutIcons/Info%20-%20Blue%20Block%20(1).png?width=52&height=52&name=Info%20-%20Blue%20Block%20(1).png)The deductions will run automatically until the amount has been settled, or you update the system to stop this deduction. Below is an example of a letter from IRD advising the employer to stop making deductions: **![IRD STOP Deduction Notice](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/screensteps/Debt_Fines/IRD%20STOP%20Deduction%20Notice.png?width=618&height=507&name=IRD%20STOP%20Deduction%20Notice.png)** #### Information to Note: - Only stop deductions for IRD debt if advised by the IRD. Do not stop on an employee's request - The balance will not be provided in the letter. --- ### Removing the IRD Debt Deduction from the Timesheet For the system to update the employee record the stop order needs to be loaded **into an active timesheet with a standard pay row**. Let's look at the options for doing this: - If the timesheet  you have entered the debt in the IRD (+) row has been processed, you need to add this stop order to the employee's next timesheet. - If you already have an active pay on your dashboard with an open timesheet for this employee, you can use this and add the entry to their timesheet. ![Pro Tip - Blue Block](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/CalloutIcons/Pro%20Tip%20-%20Blue%20Block.png?width=52&height=52&name=Pro%20Tip%20-%20Blue%20Block.png)**Pro Tip:** Sometimes the IRD letter to stop debt deductions comes soon after the order to start.  If the original timesheet you entered the IRD (+) line on is still on your dashboard, simply open this timesheet and **delete the IRD (+) line**. Update and Save the timesheet.    How to remove an IRD debt deduction after it has been activated.  ![Info - Blue Block (1)](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/CalloutIcons/Info%20-%20Blue%20Block%20(1).png?width=52&height=52&name=Info%20-%20Blue%20Block%20(1).png)This will remove the deductions in the employee's timesheet.   > ![IRD Debt Stopped (1)](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/screensteps/Debt_Fines/IRD%20Debt%20Stopped%20(1).png?width=608&height=453&name=IRD%20Debt%20Stopped%20(1).png) > > 1. In the employee timesheet, save the  entries for '**Standard Pay**'. This will generate the '**Pay Summary**' with the '**IRD debt line**' (2). > 2. Add the amounts in the IRD debt line together (a) + (b) to get the current balance owing. > 3. Add a row to the timesheet by clicking on the **green + sign.** > 4. Select **IRD debt (+)** as the entry type. > 5. Enter the **balance as calculated** in step 2 as a negative amount in any box. > 6. **Update and Save** the timesheet. > 7. The IRD debt line (2) in the Pay Summary will be removed. > Leave this row in the timesheet to processes and remove the amount from the employee record.  > ![Balance Entry IRD Debt](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/screensteps/Debt_Fines/Balance%20Entry%20IRD%20Debt.png?width=670&height=57&name=Balance%20Entry%20IRD%20Debt.png) > **Please do not remove this line from the timesheet.** ![Info - Blue Block (1)](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/CalloutIcons/Info%20-%20Blue%20Block%20(1).png?width=52&height=52&name=Info%20-%20Blue%20Block%20(1).png)**Please Note**: This entry has to be a **negative amount.** You have successfully updated the employee record to delete the IRD debt from their pay. --- ### What if the IRD debt line stays in the Pay Summary? If the IRD debt line remains in the Pay summary with a balance, the system has not updated correctly. The negative amount may be incorrect. 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