Family Tax Credit Overpayment

Work and Income Department will send you a letter with instructions to start deducting family benefit overpayments from an employees' earnings.

To set up Family Tax Credit Overpayment, go to the employee file and then to "Pay Run Inclusions". You will see this screen. 

1. Click on 'Add'.
2. Select the "Family Tax Credit Overpayment" deduction category from the drop down list.
3. Enter the deduction amount to be applied per pay run of "Fixed", "Percentage of Gross", or "Percentage of Net".
4. Enter of percentage or dollar value amount for Family Tax Credit Overpayment deduction. 
5. Select the deduction to be "Paid manually", "Paid bank account". Refer to notes below for "Paid to bank account" option.
6. Select preserved earnings (if required). More details on preserved earnings can be found here.
7. Enter any notes if you want the employee to see them on their pay slip.
8. Enter the date this inclusion is to commence.
9. Choose when this inclusion should cease.
10. Click on 'Save'.

Note: If "Paid to bank account", you will need to go to the employee's file, then "Bank Account" to add in Work & Income bank details first. Make sure you enter $0.00 in the "Pay into Account". The Family Tax Credit Overpayment amount MUST be entered in the Pay Run Inclusion > Family Tax Credit Overpayment deduction screen.  

Below is an example of a Family Tax Credit Overpayment deduction. 

Once the employee's Family Tax Credit Overpayment deduction is saved, the details will display under the Deduction line.  If you need to make any edits, click on the "Family Tax Credit Overpayment" text which will expand the details again, make the required edits and click on save. 

An example of the employee's Family Tax Credit Overpayment deduction in a pay run. 

If you selected deduction to cease "After the following amount has been reached", then when you finalise a pay run, you will notice in the employee's file, in the Pay Run Inclusions, the Family Tax Credit Overpayment deduction will display the total amount paid so far.

Once the Family Tax Credit Overpayment expiry date or specified amount has been reached then the Family Tax Credit Overpayment deduction will stop.

To delete the deduction, hover to the far right until the 'x' appears and then click on the 'x' icon.

A "Confirm delete" popup will appear. Click on 'OK' to continue with the deletion. 

 If you have any questions or feedback, please let us know via support@nzpayroll.co.nz