Question:

 

I was wondering if you could help me with a query from one of our NZ clients.

 

They are asking if an employee can make extra student loan repayments. If so, what is the best way to go about this?  Would we setup a deduction for student loan, or an extra tax deduction?

 

Answer:

 

The employer is under no obligation to handle any additional payments from an employee to IRD in regard to their student loan.  If you did this you would receive letters from IRD stating you have over paid.

 

If the employee wants to make additional payments they should contact IRD directly and there are a range of ways that can make additional payments.