IMPORTANT: This post is specific to New Zealand. If you are not a New Zealand business/taxpayer then it is probably not applicable to you.
Thinking about giving your staff a well-deserved Christmas Present of Bonus this year? Cash bonuses are always subject to
PAYE and should be put through your standard payroll process. There is a category called “Extra Emolument” designed to avoid overly penalizing lump sum payments. Other non-cash gifts (gift baskets, flowers, vouchers, etc., are subject to the FBT rules. An FBT-free allowance of $300 per employee per quarter is available.