Do you know if there is any issues with using tax code CAE & M?
My friends were instructed by the contractor to put CAE as their tax code, later they realized the amount of tax they are paying is 22.4% instead of 12.5%.
I wonder would they be able to get that extra amount refunded at the end of the WHV.
I also wonder why the contractor insisted to have them indicate CAE instead of M, are there some tax benefits for the contractor?
Contractors don't benefit from declaring a false tax code as whatever is being declared, they will have to pay that required amount to Inland Revenue.
According to the IRD website on tax codes, CAE is used for "casual agricultural employees". M would be for most people working full-time although IRD's definition is "have only one job". This does seem a bit ambiguous but I would think if you're working in the agricultural sector and is there for seasonal work, then CAE would apply as it fits the definition 100%.
check the IRD website - and there is a part and on the back of the tax form, to work out what tax code you should be. I'm sure thje contractor is giving correct info, but youa re resposible to fill in forms correctly . ignorance is no excuse in law so do your homework .
The problem is that, within the same pack house that my friends are working at, those who are under the contractor had CAE as their tax code, those who are not under the contractor had M. They are doing the same work...
CAE is the right tax code, not M, we are doing casual agriculture work