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Payroll Update

Christmas Holidays and your team’s leave

It’s that time of the year when we recommend you talk with your team about taking their summer holidays. If your business traditionally shuts down over the festive season you need to plan closing and opening days, check if anyone needs to work during the closedown, get your team sending in their leave requests, and start organising! 

Check out People in Mind’s excellent article on ‘Planning Leave for the festive season’: https://www.peopleinmind.co.nz/planning-for-the-festive-season/

Public Holidays this festive season

·         Christmas Day – Monday 25 December 2023

·         Boxing Day – Tuesday 26 December 2023

·         New Year’s Day – Monday 1 January 2024

·         Day after New Year’s Day – Tuesday 2 January 2024

For further dates, please check out: https://www.employment.govt.nz/leave-and-holidays/public-holidays/public-holidays-and-anniversary-dates/

Public Holidays – Some other useful links

Public Holidays: https://www.employment.govt.nz/leave-and-holidays/public-holidays/

Otherwise working day: https://www.employment.govt.nz/leave-and-holidays/otherwise-working-day/

Alternative Days: https://www.employment.govt.nz/leave-and-holidays/alternative-holidays/

Pay day falls on a Public Holiday – what should I do?
Even though 7-day banking is now active in NZ, for payroll purposes our recommendation is to pay the last business day BEFORE the Public Holiday. If your employee is happy to be paid after the Public Holidays this is fine but remember all discussions with employees should be made in ‘good faith’.

Paying a Christmas Bonus – Are they discretionary?

If the payment is not in an employee’s employment agreement then it’s a DISCRETIONARY PAYMENT,  and will not be included in the gross earnings when calculating the value of annual leave. This may apply to a Christmas bonus but check your employment agreement.

‘Discretionary payments’ definition: https://www.employment.govt.nz/leave-and-holidays/calculating-payments-for-leave-and-holidays/gross-earnings/

TAXING A CHRISTMAS BONUS & Lump Sum Payments
Lump sum payments must be taxed on a Lump Sum Basis per IR requirements.

Check out: https://www.ird.govt.nz/employing-staff/payday-filing/non-standard-filing-of-employment-information/lump-sum-payments

Employing young people for the holidays

There are different types of Minimum Wage Rates that you need to be aware of:

-       15 and under – there is no minimum rate

-       Starting-out minimum wage – $18.16 per hour

-       Adult Minimum Wage – $22.70 per hour

PLEASE: check the criteria of the STARTING-OUT WAGE as this may apply for 16- to 19-year-olds.

https://www.employment.govt.nz/hours-and-wages/pay/minimum-wage/different-types-of-minimum-wage-rates/ 

Payroll team at Accounted4

Anne Bland                 Extension 831             Email anne.b@accounted4.co.nz
Carolyn Lawrence      Extension 837             Email carolyn.l@accounted4.co.nz
Kate Crookston           Extension 825             Email kate.c@accounted4.co.nz



 

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