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Payroll Team Update

  • Business Shutdown – Leave Management Plan
    Have you worked out your team’s Leave Management Plan? 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/
  • Wages & Salary payments to employees when they fall on a Public Holiday
    If pay day falls on a public holiday, employees must be paid on the last working day before the public holiday.  If your employee is happy to be paid after the Public Holidays this is acceptable but remember all discussions with employees should be made in ‘good faith’
  • Paying Bonuses – Are they discretionary?
    There is a lot of confusion around paying bonuses and implications on an employee’s leave rate. If the payment is not in an employee’s employment agreement the payment is a DISCRETIONARY PAYMENT.  This 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’ are defined by MBIE on this page: https://www.employment.govt.nz/leave-and-holidays/calculating-payments-for-leave-and-holidays/gross-earnings/


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