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?

Answer

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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Rob Fyfe on money

rob-fyfeIf you missed Fairfax’s interview with Rob Fyfe it’s well worth a quick read:

  • How financially savvy are you?

Not at all. I can look at numbers and understand them easily, but personally I have never invested a lot of time into my investment options. Hopefully saying this doesn’t result in a flurry of financial advisors knocking on my door.