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Taxing Christmas bonuses

November 24th, 2013 | Posted by Accountants Auckland in Accountant in Auckland | Changes to wages | Chartered Accountants Auckland | Claiming Business expenses - (Comments Off on Taxing Christmas bonuses)

16068347_s cropQuestion

Santa usually pays his elves a bonus at Christmas time. Are bonuses included in the calculation of an employee’s annual holiday pay?

Answer

This depends. Two rates are used to work out an employee’s annual holiday pay: “ordinary weekly pay” and “average weekly earnings”. Once each is calculated, the higher of the two is used as the rate of payment for annual holiday pay.

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Giving staff overseas trips

November 24th, 2013 | Posted by Accountants Auckland in Accountant in Auckland | Chartered Accountant Auckland | Chartered Accountants Auckland | Claiming Business expenses | Claiming business expenses Meals Food and Drink | Food - (Comments Off on Giving staff overseas trips)

17319360_s jetQuestion

After Christmas Eve Santa, the elves and the reindeer return to the North Pole absolutely exhausted. Santa is proud of the team effort and would like to reward them by taking them to Hawaii for some sunshine. Santa would pay for all of the expenses – food, accommodation and airfares to and from Hawaii. Is the cost of such an overseas trip deductible?  (more…)

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