Q: We are currently in the process of finalising holiday act remediation and making payments to those who have been deemed as being underpaid.  I recall during one of the NZPPA seminars last year, it was recommended these payments be coded to a separate allowance/payment.  We are looking at taking this approach and in respect to set-up hoping if you could please advise if to be included as part of 52 week earnings for future payments, does kiwisaver apply or any other items we should ensure are flagged.

A: Yes best practice to separate, will be part of taxable gross so will be part of gross for leave and KS.  Look at it another way if leave had been paid correctly in the first instance then it would have been part of it anyway.