Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Payroll best practice

In light of the above, we would recommend an employer who has outstanding payments to a deceased employee to take the following steps: 1. First, contact the next of kin as to whether the deceased employee has a valid Will. If so, follow the executor’s directions as to making this payment when probate is granted. 2. If there is no valid Will, ask the next of kin whether they (or anyone) are applying for administration of the estate. If so, follow the administrator’s instructions as to making payment as per the letters of administration. 4. If the final pay is over $15,000, payment cannot be made under section 65. Administration of the estate is required for this payment to be made. Inform the next of kin that you cannot make payment without administration of the estate. Consider putting the money on Interest Bearing Deposit in the interim. 5. If the final pay is less than $15,000, and you are satisfied that the employee is deceased and that administration of the estate has not been obtained, this can be paid to one of the listed people (payee) as per section 65. a. written consent to receive the payment in full, b. written confirmation that administration of their estate has not been obtained; c. confirmation of their relationship to the deceased, d. bank account number, e. a verified copy of their ID, and f. an undertaking to properly apply the funds to the estate. 7. On receipt of this written consent, make payment to the listed person. Keep copies of this payment and the consent/undertakings for your records. 6. Payroll/the employer should obtain from the payee: 3. If there is no valid Will, and the next of kin informs you that the estate will not be administered, s 65 applies.

© New Zealand Payroll Practitioners Association, Mar 2026, Ver 9

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