Termination Essentials

NZPPA Certificate in Payroll Termination Essentials (Level 4)

Flat tax rate and earner levy (Extra Pays):

Taxable income: Flat tax rate (Redundancy or Retirement):

$0 to $15,600

10.5 cents

12.25 cents

From $15,601 to $53,500

17.5 cents

19.25 cents

From $53,501 to $78,100

30 cents

31.75 cents

From $78,101 to $156,641*

33 cents

34.75 cents

From $156,642 to $180,000

33 cents

N/A

Over $180,001

39 cents

N/A

Simple example:

• Pay period fortnightly at $3,500 a redundancy payment of $1000

• Add the last two pays together: $3,500 +$3,500= $7,000

• Multiply this by 13: 13 x $7,000 =$ 91,000

• Then add the redundancy pay: $91,000 + $1,000= $92,000

• Then select the tax rate for the taxable income: 33 cents, as it is a redundancy payment (no earner levy).

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

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