Sometimes, in emergencies, employees are paid cash directly i.e. outside of our system. When this occurs the payment needs to be recorded and PAYE, and KiwiSaver (if any) must be calculated and paid to the IRD. We do this using the pay type 'Other debt (-)'.
We advise against paying employees this way on a regular basis as it increases the risk of errors and undermines our processes as a payroll intermediary.
Avoid doing this altogether if your employee is paying Ministry of Justice fines.
Add the employee to a pay and open their timesheet
- Enter and/or check their standard pay is correct
- Copy the 'Pay day transfer' amount
Choose the 'Other debt (-)' pay type
In a new row, select 'Other debt (-)' from the drop down list.
Enter the amount already paid to the employee
- Type in the amount of cash/funds you have paid to your employee, into the new row.
- Click Update and save. Most of the time this will equal their pay day transfer. You will see the amount you entered as an 'After tax deduction'.
- The amount should have been deducted from the 'Pay day transfer' amount. The difference between the 'Gross' and the 'Net' will be filed and paid to the IRD.
Transfer for the pay as normal, using the pay total on the Dashboard
On the Dashboard you will see a lower than normal deposit amount. This is PAYE and any KiwiSaver amount that we pay to the IRD. In the example, there is only one employee added to the pay so the 'We'll pay' amount is zero because you have already paid this employee their net wage in cash.