When employing a shearer or shed hand the two tax codes to be declared on the tax code declaration form (IR330) are CAE or WT.
- The casual agricultural employee (CAE) tax code is used when a person is employed on a day to day basis for up to three months (any longer they are a standard employee).
- Tax is deducted using the current PAYE calculator.
- Withholding tax (WT) is required to be deducted if a shearing contractor is employed. This deduction is not required if a current certificate of exemption is presented.
- Withholding tax is deducted at the current rate. At present this is 15% if a tax declaration form has been provided or 30% if not.
In both cases the employee must complete an IR330 Tax declaration form.