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Community > NZ Payroll >

NZ Payroll - Re: Holiday Pay Accrual

Started by Vineet Chaudhary -   in NZ Payroll

Hi,
We are new to Xero and we generally pay commission on sales to all of our employees monthly. Our commission structure is (inclusive of Holiday Pay). Now, If I am adding commission amount to the payroll, it is including the holiday pay accrual amount as well. Is there any way to get this thing sorted so that payroll does not include the holiday pay accrual of the commission amount.

Thanks
RSS
I'm not a payroll law expert, but I think commission does become part of total remuneration and calculates into total earnings for holiday pay for permanent employees. The commission becomes part of average weekly earnings.

Take a look at this, scroll down to the relevant section.
https://www.employment.govt.nz/leave-and-holidays/calculating-payments-for-leave-and-holidays/calculating-annual-holiday-payments/

You could also call Employment NZ with your specific situation. I think its a free service to employers.
 

Margaret Haines