--- title: STC - Special Tax Codes description: This article explains adding Special Tax Codes awarded by IRD to the employee's profile. These usually relate to student loan repayments and/or PAYE rates. --- [Skip to content](https://help.thankyoupayroll.co.nz/en/special-tax-codes-adding-different-student-loan-rates#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. [Employee Settings](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en) 3. [Tax Code Settings](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#tax-code-settings) # STC - Special Tax Codes ## Special Tax Codes are approved by the IRD to reduce either student loan deductions and/or PAYE tax rates for a specific time period. *Updated: July 2026* You may receive a letter/notice from the IRD or a certificate from your employee to use a special deduction rate. This notice/certificate will be for a non-standard deduction and could be for (examples only, not an exhausted list): - deducting the student loan repayments at a rate lower than usual, - deduct no student loan repayments at all, - deducting PAYE at a special rate, - to deduct PAYE at all The notice or certificate can contain both a special tax code and a reduced student loan deduction rate.  **NOTE**: This is different to the standard notice to start making student loan deductions at the usual rate.  ![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)**STC**, or Special Tax Code is a tailored PAYE tax rate to suit an individuals circumstances. This tax code is for a **specific period**, whereafter the certificate must be renewed or an IR330 declaration be submitted. --- ### How do I set this up? As this is a tax code, the update is done to the Employee's Profile. #### Where to Change the Tax Code: > ![](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/image-png-Aug-06-2026-02-50-50-7987-AM.png?width=540&height=79&name=image-png-Aug-06-2026-02-50-50-7987-AM.png) > > In the employee's profile select '**Standard Pay**' from the tab menu. #### Changing the Tax Code: > 1. In the tax code select '**STC'** from the dropdown menu. > ![](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/undefined-Aug-06-2026-02-54-39-2048-AM.png?width=157&height=387&name=undefined-Aug-06-2026-02-54-39-2048-AM.png) > >   > > 1. In the next box, select the tax code option that applies based on the letter/certificate.  > ![](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/image-png-Aug-06-2026-02-54-49-3326-AM.png?width=410&height=377&name=image-png-Aug-06-2026-02-54-49-3326-AM.png) > 2. Fill in the percentage that is indicated on the letter from IRD or the certificate. > ![](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/image-png-Aug-06-2026-02-56-52-8270-AM.png?width=402&height=232&name=image-png-Aug-06-2026-02-56-52-8270-AM.png)  > 1. If the deduction is to be Zero, fill in **0.00** > 2. If the STC code applies to both student loan repayments and PAYE, you will see boxes for both as in the example below. > ![STC\_Both PAYE and StudenLoan](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/screensteps/Employee%20Settings/STC_Both%20PAYE%20and%20StudenLoan.png?width=446&height=326&name=STC_Both%20PAYE%20and%20StudenLoan.png) > 3. NOTE When you save the new setting that the Tax Code will not stay **STC**, but show whatever the original tax code was. In this example, the employee was on **M SL**.This is correct. > 4. Scroll down to the bottom of the page and click 'Save' to update this setting. > ![Dont forget to save](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/NavigationPathways/Dont%20forget%20to%20save.png?width=237&height=96&name=Dont%20forget%20to%20save.png) > > This employee's tax code has now been updated. ![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)Set yourself a **reminder to update your employee's tax code** on the end date specified in the letter from IRD, or on the certificate.  ![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)If you need to [update the tax code in the middle of a pay period](https://help.thankyoupayroll.co.nz/en/changing-a-tax-code?hsLang=en), follow this link to our help article full of useful tips. --- ### What will I see on the Timesheet? When you update employee settings, an open timesheet on the dashboard will display the pay type '**Standard Pay (-1)**' to show entries that were added before the updated setting. This pay type will not display in new timesheets created after updating employee settings. > ![STC Student loan Timesheet](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/KnowledgeBase/screensteps/Employee%20Settings/STC%20Student%20loan%20Timesheet.png?width=608&height=380&name=STC%20Student%20loan%20Timesheet.png) > > 1. The PAYE tax code will display the base code, not STC. The special rate will be applied, so if you entered the rate as 0.00 the amount will be $0 on the timesheet. > 2. The student loan repayments will be calculated at the STC rate, if entered. > 1. If the student loan rate was set to 0.00, 'student loan' will not appear in the timesheet calculations or on the payslip. --- ![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)For more information on using STC codes, [follow this link to the IRD website](https://www.ird.govt.nz/student-loans/living-in-new-zealand-with-a-student-loan/repaying-my-student-loan-when-i-earn-salary-or-wages/student-loan-special-deduction-rate). That is it! You have now added STC rates to your employee's tax calculations, easy as pie! - [Getting Started](https://help.thankyoupayroll.co.nz/en/getting-started?hsLang=en) - [Login Experience](https://help.thankyoupayroll.co.nz/en/login-experience?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/login-experience?hsLang=en#quick-answers) - [Account Settings](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#quick-answers) - [Business Account Settings](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#business-account-settings) - [User Profile Settings](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#user-profile-settings) - [Pay Support Settings](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#pay-support-settings) - [Account Integration](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#account-integration) - [Delink Account](https://help.thankyoupayroll.co.nz/en/account-settings?hsLang=en#delink-account) - [Employee Settings](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#quick-answers) - [Importing Employees](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#importing-employees) - [Tax Code Settings](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#tax-code-settings) - [Work Pattern](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#work-pattern) - [Student Loan](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#student-loan) - [KiwiSaver](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#kiwisaver) - [Child Support](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#child-support) - [Personal Bank Accounts and Payroll Giving](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#personal-bank-accounts-and-payroll-giving) - [Employee Payslips](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#employee-payslips) - [Custom Pay Types](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#custom-pay-types) - [Examples of Custom Pay Types](https://help.thankyoupayroll.co.nz/en/employee-settings?hsLang=en#examples-of-custom-pay-types) - [Processing Pays](https://help.thankyoupayroll.co.nz/en/processing-pays?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/processing-pays?hsLang=en#quick-answers) - [Timesheets](https://help.thankyoupayroll.co.nz/en/processing-pays?hsLang=en#timesheets) - [Special Pays](https://help.thankyoupayroll.co.nz/en/processing-pays?hsLang=en#special-pays) - [Cashing Up Leave](https://help.thankyoupayroll.co.nz/en/processing-pays?hsLang=en#cashing-up-leave) - [Enhancement Features](https://help.thankyoupayroll.co.nz/en/processing-pays?hsLang=en#enhancement-features) - [Everything Leave](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#quick-answers) - [Annual Leave](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#annual-leave) - [Public Holidays & Alternative Leave](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#public-holidays-alternative-leave) - [Examples of Public Holiday Timesheeting](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#examples-of-public-holiday-timesheeting) - [Sick Leave](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#sick-leave) - [Bereavement Leave](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#bereavement-leave) - [Family Violence Leave](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#family-violence-leave) - [Parental Leave](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#parental-leave) - [Leave Without Pay](https://help.thankyoupayroll.co.nz/en/everything-leave?hsLang=en#leave-without-pay) - [Final Pay](https://help.thankyoupayroll.co.nz/en/final-pay?hsLang=en#main-content) - [Employee Profile Archive](https://help.thankyoupayroll.co.nz/en/final-pay?hsLang=en#employee-profile-archive) - [Public Holidays](https://help.thankyoupayroll.co.nz/en/public-holidays?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/public-holidays?hsLang=en#quick-answers) - [Debts, Fines, Payments](https://help.thankyoupayroll.co.nz/en/debts-fines-payments?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/debts-fines-payments?hsLang=en#quick-answers) - [Reports](https://help.thankyoupayroll.co.nz/en/reports?hsLang=en) - [End of Financial Year](https://help.thankyoupayroll.co.nz/en/end-of-financial-year?hsLang=en#main-content) - [Quick Answers](https://help.thankyoupayroll.co.nz/en/end-of-financial-year?hsLang=en#quick-answers) - [Employee App](https://help.thankyoupayroll.co.nz/en/employee-app?hsLang=en) - [Contractors](https://help.thankyoupayroll.co.nz/en/contractors?hsLang=en) - [COVID-19](https://help.thankyoupayroll.co.nz/en/covid-19?hsLang=en) [![Chill listening crop-3](https://help.thankyoupayroll.co.nz/hs-fs/hubfs/TYP_Logo-09-2.png?width=129&height=24&name=TYP_Logo-09-2.png "Chill listening crop-3")](http://thankyoupayroll.co.nz) Help Centre Copyright © 2026, Thankyou Payroll