Taxation on Bonus Payments

Krissnz
Experienced Cover User
24 Posts
Experienced Cover User
New Zealand
Experienced Cover User

24Posts

3Kudos

1Solutions

Taxation on Bonus Payments

Hello

Can anyone please help me with getting the tax correct in a one off bonus payment.  Manually I have used the IRD site and have worked out the tax should be calculated at 31.39% but I cannot seem to get payroll to do this even using the "tax overide feature".

1 REPLY 1
Steven_M
MYOB Moderator
40,166 Posts
MYOB Moderator
New Zealand
MYOB Moderator

40,166Posts

5,449Kudos

5,936Solutions

Re: Taxation on Bonus Payments

Hi @Krissnz 

 

Our New Zealand Payroll Help Article: Paying bonuses and dealing with the tax offers assistance with regards to the processing bonuses and dealing with the tax amount on those pays.

 

Generally speaking, for gratuitous bonuses, you would use the Tax Override option and select the appropriate tax code amount for that pay/extra pay amount.

Alternatively, you could go into the Rate that is listed for the PAYE pay code and manually type the required value of that pay code. 

Kind regards,
Steven

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