Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Skill Check 14 - Government Deductions

1. Is child support deducted from a redundancy computation payment?

Yes / No

2. Is child support still taken out of an employee's final salary or wage on termination? Yes / No

3. What payment has the student loan deduction taken out of on termination?

(a) A settlement non-taxable payment under section 123

(b)

Redundancy compensation payment

(c) Reimbursing payment paid to the employee on termination

4. What payments do not have ACC earner levy deducted on termination?

(a)

Annual bonus and annual leave paid out on termination

(b)

8% paid as a lump sum on termination

(c)

Redundancy and retirement payments on termination

5. Do KiwiSaver employer and employee contributions come out of reducing compensation? Yes / No

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

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