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Setting up a court fines deduction

At a glance

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    The Ministry of Justice may send you a letter requesting money be deducted from an employee's pay

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    The letter provides payment amounts, the start date, and remittance details

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    Court fines must be paid directly to the Ministry of Justice (NOT to the IRD)

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    Learn more about court fines at justice.govt.nz

There's a court fines deduction in MYOB that's been created for you. All you need to do is assign it to the employee, enter the total amount of the fine, and how much will be deducted each pay.

Once the balance of the court fine reaches zero, the deduction stops automatically.

To set up an employee's court fine 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 Court fines.

    Animation showing add deductions being clicked to reveal court fines deduction
  5. Enter the details of the court fine:

    1. Enter the Balance owing. This is the total amount of the court fine to be deducted over time. Once this balance is reached, the deductions will stop.

    2. Enter the Amount per pay to be deducted.

      Example court fine deduction with amounts highlighted

  6. Click Save.

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

Example pay with court fine deduction highlighted

Protected net earnings

Employees who are required to pay court fines are entitled to keep 60% of their net (after-tax) earnings. If a court fines deduction will leave the employee with less than 60% of their net pay, the court fines deduction will be adjusted automatically to comply with the protected net earnings rule.You can check the Balance owing on the court fine at any time in the employee's standard pay (Payroll > Employees > click the employee > Standard pay tab).

You can check the Balance owing on the court fine at any time in the employee's standard pay (Payroll > Employees > click the employee > Standard pay tab).

FAQs