How do you split the IRD debt repayments into weeks?

The IRD debt letter states the full amount owed by the employee. Let's explore how this is split into payments.

Unless the debt is small and can be repaid in one transaction, the system uses a formula supplied by the IRD for calculating repayments.

This formula is programmed into the payroll system and cannot be changed by the employer.

Info - Blue Block (1) The system automatically calculates a percentage of the debt amount to be included in each timesheet. No manual calculations are needed.

If the employee wishes to make other repayment arrangements or divide the repayments differently, they have to contact IRD themselves and make an arrangement with them personally. IRD will notify the employer in writing to stop deductions if the debt has been settled early.