Q: Need some confirmation on calculating PAYE on lump sum payments.
Let say a bonus to be paid to an employee is to be $5000 inclusive of KiwiSaver – is the PAYE calculated on the amount before KiwiSaver is deducted or after KiwiSaver is deducted from the $5000?
A: PAYE is based on gross and KS is also based on gross but comes out of net after PAYE.