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New Zealand - Annual Earnings on Terminations is different from the Manual calculation

NZ Lump Sum was entered through Manual Calculation, and the Annual Earnings aren't the same as the Annual Earnings in the Termination.

Updated over 2 months ago

The gross-up annualised earnings that appear in the Annual Earnings fields on Terminations and Manual Calculations are calculated using two different methods, depending on the screen you are using. This may result in two different values depending on the employee's frequency and what they have been paid recently. The calculation for:

  • Manual Calculations are based on the employee's PAYE income received over the last four weeks.

  • Terminations are based on the employee's PAYE income for their last two paid periods.

If you are paying extra pay on termination through Manual Calculation, you may need to overwrite the Annual Earnings so that it uses the correct basis for Annual Earnings.

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