NZPPA’s Holidays Act 2003 Taxable Payments Flowchart – FREE RESOURCE

*Please note: The Taxable Payments Flowchart is a guide only

One of the issues NZPPA sees with payroll and the Holidays Act is that there has been little input from payroll in actually defining taxable payments and which Holidays Act calculation it should be assigned to.

It is common to see when NZPPA undertakes an audit either all payments assigned to every leave type or the opposite and this can create an over- or under-payment situation that over time could be very costly to the business not just in terms of money but also in terms of the time it takes to resolve.

The Taxable Payments Flowchart aims to get you thinking about the taxable payments being made to your employees by posing questions such as:

• Is the taxable payment an agreed term included in the employee’s employment agreement or not?
• Is the taxable payment a regular payment?
• When is the payment paid to the employee: on the day, the week or throughout the year at various times?

These are just some of the factors that need to be taken into account when configuring what payments should be assigned to which calculation under the act.

The Taxable Payments Flowchart has been part of the NZPPA’s Payroll Practice Guide for a number of years and it is one of many types of diagrams that help payroll in determining how to configure payroll to be compliant with legislation such as the Holidays Act 2003.

Click here to get a copy of the: Taxable Payments Flowchart.

The NZPPA’s Payroll Practice Guide is an annual 460+ page resource guide for payroll.  NZPPA members get a complimentary guide as part of their membership cost and receive an updated copy every year.  The guide can also be purchased as a standalone publication.  The 2017 edition will be released in late May 2017.

NZPPA Supporting Payroll since 2007!