Tips for saving accounting costs
October 31st, 2014 | Posted by in Annual Accounts - (Comments Off on Tips for saving accounting costs)Taxing Christmas bonuses
November 24th, 2013 | Posted by in Accountant in Auckland | Changes to wages | Chartered Accountants Auckland | Claiming Business expenses - (Comments Off on Taxing Christmas bonuses)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.