Skip to main content

Te tāke i te utu whakamutu mahi ki te kaimahi Taxing employee redundancy

Back

Redundancy is when you end someone’s employment because their position is not needed any more. A redundancy payment can be made when the person's employment is terminated. You might make a redundancy payment to:

  • an employee whose position is no longer needed
  • a seasonal worker whose usual seasonal position is no longer needed (this only applies if the employee works for you at a regular time each year and does not work year-round).

Redundancy payments are taxed at the lump sum rate. The ACC earners’ levy does not apply to redundancy payments.