Q: We have been instructed to pay a relocation allowance to an NZ employee who has had to move location to take up a new position within the company. I have been advised to pay it as an after-tax amount and wanted some advice on any tax implications we or the employee may be facing if we pay this without taxing it.
A: This is fine to be paid this way as long as it meets the requirement detailed here: https://www.ird.govt.nz/employing-staff/paying-staff/allowances/relocation-expenses-allowances