Taxation of extra pay when employment ends

Question

Hi,&nbsp;The release notes for MYOB payroll desktop version 2025.1 included the above note re: taxation of extra pay when employment ends.&nbsp;The extract notes the change to the annualised calculation to now be based on two weeks instead of four weeks; however, the IRD website is still stating the calculation is to be based on four weeks?&nbsp;MYOB - can you please advise where this change was initiated from?&nbsp;Also, the old calculation of 4 weeks was multiplied by 13 - are you now suggesting the two weeks to be multiplied by 26 instead?&nbsp;

genreve_s · Answer

Hi KaliPPS,&nbsp;
&nbsp;
The change from a four-week to a two-week calculation is based on information from IRD's website. You can find the details on slide 14 at this link. For accurate details about the calculation, it would be best to contact IRD directly.
&nbsp;
Regards,Genreve
&nbsp;

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Taxation of extra pay when employment ends

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