The holiday season is a busy time for businesses, and it can also be a confusing one when it comes to payroll. In New Zealand, there are special rules and regulations that you need to follow in order to ensure that your employees are properly compensated during this time. Here’s what you need to know about Christmas payroll in New Zealand.
Holiday Entitlements
The Holidays Act 2003 makes provision for employees who work on public holidays and certain other days, such as Christmas Day or Boxing Day. This means that if an employee works on a public holiday, they are entitled to an extra day’s pay at their normal rate in addition to their usual wage or salary. However, if the employee does not work on the day then they are still entitled to receive their normal wage or salary plus an additional 0.5 days' pay at their normal rate.
If an employee takes annual leave during the week leading up to the holiday period then they will be paid out their regular wages for the hours worked before taking leave plus 0.5 days' pay at their normal rate for each of those days taken as annual leave. Please note that this only applies if there is a public holiday within that week of annual leave; otherwise, employees will simply be paid out their regular wages for the hours worked before taking leave.
Payroll Deductions
It is important to note that any deductions from an employee's wages must still be made even if they have been off work due to sickness or injury over the holidays. This includes deductions such as PAYE (Pay As You Earn) tax, student loan repayments and KiwiSaver contributions as well as any other deductions outlined in the employment agreement between employer and employee prior to commencement of employment with the company. It is also important to remember that any bonuses or arrears payments should also be deducted from wages when applicable.
Christmas payroll can be complicated but it doesn't have to be! By following these guidelines and staying up-to-date with all relevant legislation, you can ensure that your employees are properly compensated during this festive period while avoiding any issues with compliance requirements down the line. With these tips in mind, you'll have nothing stopping your business from running smoothly over this holiday season!
