About this resource

This factsheet covers tax treatment of back pay, bonuses, holiday pay, redundancy payments and other extra pay made to employees or former employees.

How to use it

Review the employee’s recent income, apply the current extra-pay deduction rules and report the payment through employment information. Discuss additional deductions with the employee where appropriate.

Related forms and guides

• Employer’s guide (IR335)
• Getting lump sum payments – employees (IR1046)
• Employment information (IR348)

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