Secondary Tax Code — STC
What Is Tax Code 'STC'?
|Note: This tax code only applies to temporary, casual and seasonal workers, so you can skip this if you want.
STC, or Special Tax Code, is used when an employee asks you to make tax or student loan deductions from salary or wages at unusual rates.
Such employees will have to provide either or both of the following certificates:
- A special tax code certificate informing the employer what tax deductions to make.
- A special deduction rate certificate authorising the employer to deduct a different rate of student loan repayments.
The certificate may authorise you to do one of the following:
- Deduct no tax at all.
- Deduct tax at a special rate.
- Deduct ACC earners' levy only.
- Deduct no student loan repayments.
- Make PAYE deductions at a specific rate.
- Deduct student loan repayments at a lower rate than the usual.
Remember: Sometimes the certificate may contain both a special tax code and a special deduction rate for the employee’s student loan.
What employers need to gather from the certificate.
Make sure the certificate is valid if all of the following is checked:
- The validity of the person's name.
- IRD number match with their tax code declaration (IR330).
- Signature of the Inland Revenue manager.
- It is for the current tax year.
- Shows the rate at which tax should be deducted.
- Shows any student loan obligations.
- Has a start date and expiry date.
Where to Find & Enter Tax Code 'STC'?
STCs are not common and anyone with this code would have told you beforehand due to the verification required.
Unfortunately, for now, it is not available on our Platform and will have to be filled manually and directly with IRD at the moment.
Click A Tax Code To Proceed
Keeping track of my employees' payroll used to take me hours, days even, now, I do it in minutes.– R. Burt