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harper23's avatar
harper23
Trusted User
4 years ago
Solved

Final pay PAYE

I have done a final pay for an employee with a large amount of annual leave and accrued (191 hours) which makes his final pay about 5 times more than his weekly pay. The PAYE on it is huge. Does the ...
  • Jesh_D's avatar
    Jesh_D
    4 years ago

    Hi harper23 

     

    Thank you for your post.

     

    Generally speaking, the PAYE amount will be higher is the amount you are paying the employee is higher due the fact that a lump sum would incur a higher tax rate. Here is a Help Article that you can refer to in order to correctly process your employees final pay: Processing a final pay. What I would recommend is seeking advice from your accounting advisor or the IRD for help with your specific final pay needs. The Department of Labour website is a good place to start.
     

     Please let us know how you get on and if you require further assistance.

Jesh_D's avatar
Jesh_D
Former Staff
4 years ago

Hi harper23 

 

Thank you for your post.

 

Generally speaking, the PAYE amount will be higher is the amount you are paying the employee is higher due the fact that a lump sum would incur a higher tax rate. Here is a Help Article that you can refer to in order to correctly process your employees final pay: Processing a final pay. What I would recommend is seeking advice from your accounting advisor or the IRD for help with your specific final pay needs. The Department of Labour website is a good place to start.
 

 Please let us know how you get on and if you require further assistance.