Q: We are changing to a new payroll system. Can you please confirm a taxable allowance would be included in NZ gross earning annual holiday; BAPS & Order weekly pay 4 weeks? This is for salaried staff.
Regarding salary holiday pay with a taxable allowance, do we pay the higher rate of holiday day plus allowance or just the
higher rate of holiday day?
For waged staff, can you please confirm a taxable allowance would be included in NZ gross earning annual holiday, BAPS & Order weekly pay 4 weeks?
A: Taxable allowances are part of the gross for leave; you need to determine if the allowance is part of the day, week, or 12-month period to assign it to the correct calculation.