Protected Earnings Tab - New Zealand

Use this tab to set the transaction types that are included in the protected earnings calculations. Also you can also apply the protected earnings when creating payments.

The Protected Rate is set by the government to ensure that an employee has enough pay after child support payments to live on. You are not able to deduct child support which would leave the net pay (after tax withheld and deductions of child support) of less than the protected earnings rate.

The Child support transaction types are taken from the Inland Revenue Reporting Configuration Screen.

If child support deductions will cause the net pay to be less than the Protected Rate, you must change it. You can do this as part of the Create Payments process, or when running the Protected Earnings Report.

Options Reference

Each option and field on the form is described below. Mandatory options and fields are highlighted in red.

Transaction Types included in Earnings

Select the transaction types that make up earnings. The transaction types that you select should not include other deductions.

Apply Protected Earnings when Creating Payments

Select this option to update the child support amounts if the Protected Rate is not reached. You will be advised on the Create Payments confirmation form if the amounts are updated. Notices must be sent to the Child Support Agency if the amount is changed from the deduction on a pay.

Protected Rate

Enter the percentage for the protected net earnings rate.