Employers face up to 5 years in prison for failing to pay employee taxes, KiwiSaver, and student loans to the government.

Inland Revenue (IR) warns employers that failing to remit PAYE, KiwiSaver, and student loan deductions to the government is a criminal offence punishable by up to five years in prison. IR emphasizes that both employers and individuals aiding such failures, including directors, can be prosecuted. Past cases include a woman jailed for three years over $1.6 million in diverted PAYE payments and a director returning from Australia to face charges. IR stresses these funds are trust money belonging to employees and must be paid by due dates. While employer tax debt has dropped significantly since 2000, IR continues to combat scams and improve compliance.