Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Skill Check 15 - Extra Pays

1. What are the four ways leave provided under the Holidays Act is taxed as an extra pay on termination? Select the correct four from the options available.

(a) Annual leave is taken, alternative holiday cash out, 8% pay as you go, and bereavement leave was taken.

(b) Annual leave is paid out on termination, cash out Alt holiday on termination, 8% accrual of termination, and pay as you go on termination.

(c) Annual leave 1 week paid out, SL taken, Unpaid leave, annual leave entitlement paid out on termination.

2. What initial period is an extra pay based on so it can be annualised?

(a) 2 weeks

(b) Last 2 pay periods

(c) Last 4 weeks

(d) Last month

3. What are the multipliers based on the pay period for extra pay?

(a) Weekly x 10, Fortnightly x 14, 4 weekly x 4 and Monthly x 12

(b) Weekly x 26, Fortnightly x 13, 4 weekly x 6.5 and Monthly x 6

(c) Weekly x 13, Fortnightly x 13, 4 weekly x 13 and Monthly x 12

(d) Weekly x 12, Fortnightly x 12, 4 weekly x 12 and Monthly x 13

4. If a remediation payment for underpayment of leave is paid to an employee, is it taxed as salary, wage, or extra pay?

Wage or salary or extra pay (circle the correct rate)

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

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