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Child support deductions

At a glance

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    Inland Revenue (IR) will send you a child support deduction notice if you need to deduct child support from an employee’s pay

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    IR will let you know how much to deduct

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    You can only stop deducting child support payments if IR tells you to

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    Learn more about child support deductions at ird.govt.nz

There's a child support deduction in MYOB that's been created for you. All you need to do is assign it to the employee and enter the amount to be deducted each pay.

To set up an employee's child support deduction

  1. Go to the Payroll menu > Employees.

  2. Click an employee who requires this new earning. Need to add an employee?

  3. Click the Standard pay tab.

  4. Under Deductions, click Add deductions and choose Child support.

    Choosing child support deduction
  5. Enter the amount to be deducted each pay. This amount will only apply to this employee.

    Amount entered against child support deduction
  6. Click Save.

Next time you do a pay run for the employee, the child support deduction will be included.

Example pay containing child support deduction

Protected net earnings

Employees who are required to pay child support are entitled to keep 60% of their net (after-tax) earnings. If a child support deduction will leave the employee with less than 60% of their net pay, the child support deduction will be adjusted automatically to comply with the protected net earnings rule. For more information visit the Inland Revenue website.

FAQs