IR3 Question 20 Shareholder-employee salary
If, as a shareholder-employee, you received a salary between 1 April 2019 and 31 March 2020 with PAYE deducted, include the amount in Box 11A.
If, as a shareholder-employee, your shareholder-employee’s salary or director’s fees had no PAYE deducted, include the amount in Box 20. If you would normally receive a shareholder-employee salary (even if you didn’t receive one this year), please tick 21A.
If you are not a shareholder employee and you received director’s fees with no tax deducted, show the income at Question 26.
The company that paid your salary or fees will be able to tell you exactly how much to show in your return.
Over-payments of AIM provisional tax that relate to shareholder employee salary accruals are allowed to be used to meet the shareholder’s tax liability on that salary at the end of the income year. Include the amount of any AIM tax credits transferred to you at Box 20B.
Question 20C
In-work tax credit (IWTC) is for families who normally work a minimum number of hours each week, as follows:
a two-parent family where one or both parents between them normally work 30 hours or more a week
a single parent normally working 20 hours or more a week.
The eligibility criteria for IWTC changed from 1 April 2011 to include the hours worked without pay by major shareholders* in their close companies**. To qualify, the company must derive gross income.
If you’re already registered for WfFTC, and now meet the requirements for IWTC you’ll need to tick box 20C of your IR3.
If you’re not registered for WfFTC but you think you qualify, please complete a Working for Families Tax Credits registration form (FS1).
For more information go to ird.govt.nz/new-to-wff (search keywords: in-work tax credit).
ACC earners’ levy
Shareholder-employee remuneration or director’s fees without PAYE deducted are liable for ACC earners’ levy. The company should deduct earners’ levy from your remuneration or director’s fees when declared. ACC will invoice the company for this.