Taxing Christmas bonuses

16068347_s cropQuestion

Santa usually pays his elves a bonus at Christmas time. Are bonuses included in the calculation of an employee’s annual holiday pay?


This depends. Two rates are used to work out an employee’s annual holiday pay: “ordinary weekly pay” and “average weekly earnings”. Once each is calculated, the higher of the two is used as the rate of payment for annual holiday pay.

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More payroll changes

12986097_sMore changes to payroll – yes, more!  With the constant changes and complexities involved in calculating wages it often amazes me when organisations relegate the responsibility of Payroll to some poor monkey who hasn’t a hope of getting it right (no need to mention Novapay here).  Thankfully the changes are pretty minor this year and here’s what you need to know: Continue reading More payroll changes