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Tips for saving accounting costs

October 31st, 2014 | Posted by Wendy Simpson-Fox in Annual Accounts - (Comments Off on Tips for saving accounting costs)

Taxing Christmas bonuses

November 24th, 2013 | Posted by Accountants Auckland in Accountant in Auckland | Changes to wages | Chartered Accountants Auckland | Claiming Business expenses - (Comments Off on 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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