When your clients pay you into your Hnry Bank account, you'll be notified of a new Payslip available for you to view. This Payslip will provide a breakdown of all your taxes, expenses and allocations, and may look something like the below:
1. Total Payment
The total amount payable by your Client.
If you are GST registered, this shows the total amount of GST that was included in the Total Payment.
3. Taxable Income
This is your Income and the amount you are required to pay Income Tax on (if you are GST registered, this is the Total Payable amount less GST).
This is the total all your deductions (the total of numbers 5-10 below)
5. Income tax pre-paid by client
If applicable, this is the fixed percentage amount of Withholding Tax your Client or Recruiter deducts and declares to IRD prior to making payment to your Hnry account. This should be the percentage amount you provided to them on an IR330C form
N.B. Withholding Tax is just another name for Income Tax that is "withheld" by a third-party.
- What if my employer or recruiter deducts Withholding Tax from me?
- Withholding Tax and IR330C Forms
- Income Tax and its aliases
6. Income Tax
If your Client is not deducting Withholding Tax prior to payment, then this line shows your full Income Tax obligation deducted and paid by Hnry.
If number 5 above is applicable, then this is the "Top-up" Income Tax required to be deducted and paid to IRD by Hnry:
e.g. If your total Income Tax rate should be 28%, and your Recruiter deducts and pays the first 10% of your Income Tax as Withholding Tax (shown under "Income Tax pre-paid by Client"), this line will show the remaining 18% required to be deducted and paid by Hnry, ensuring you have paid your full tax obligation of 28%.
N.B. Your Income Tax rate is based on the total of ALL of your earnings within a Financial Year, irrespective of how you earned it (e.g. salaried job, cash in hand, paid by a recruiter as Schedular Income, etc. These all contribute towards your personal income and are taxed based on the total across all these sources.
The article below outlines more about how the tax rates are calculated:
7. Student Loan
If you have a Student Loan, and are due to earn above the Student Loan repayment threshold this Financial Year, Hnry will calculate, deduct and make payments towards your Student Loan for you.
N.B. You must indicate under the Financial Details section on your profile if you have a Student Loan in order for us to make these payments on your behalf.
All New Zealanders are required to pay levies to ACC. Your ACC levy rate is charged for every dollar earned and your ACC rate is set based on the type of work you do. The article below provides more information about ACC:
9. Hnry Fee
This is your 1% Hnry service fee. If you are GST-registered, the amount shown is exclusive of GST (as the GST amount gets accounted for in your GST returns instead).
If you are not GST-registered then the amount show here includes GST.
Hnry fees are automatically raised as Business Expenses on your behalf - so there's no need to raise them yourself.
With Hnry Allocations, you can set aside a percentage of your income to be deducted each time you're paid. If you have set up any Allocations these optional deductions will appear here.
11. In your pocket
This is the the total amount that you received into the personal bank account you specified on the Financial Details page in Hnry. This amount is the Total Payable less all deductions.
12. Net Income
If you have Client Chargeable expenses that are being reimbursed, then this is the amount of "Income" less any expenses you are being reimbursed for (e.g. the "in your pocket" amount less expense reimbursements).
N.B. If you do not raise invoices but are expecting to be reimbursed for expenses by a Client then you must make sure you have raised these as Client Chargeable expenses in your Hnry dashboard prior to payment being made by the Client.
13. Expense Reimbursement
If you have expenses that a Client has agreed to reimburse you for in full, then this is where these reimbursement amounts are shown.
N.B. Client Chargeable expense reimbursements are not Income therefore you do not need to pay Income Tax or ACC on this amount.