How is parental leave taxed

Employees are able to salary sacrifice PLP where their employer offers such an arrangement and the PLP is provided by the employer. Note: The amount of tax a recipient must pay depends on their taxable income see the definition of taxable income in the SSAct subsection 23 1 for the financial year. A recipient's expected or possible taxation arrangements is solely a matter between the person and the ATO. Taxation Administration Act Schedule 1 section Social security or other benefit payment, Schedule 1 section Annual payment summary, Schedule 1 section Part-year payment summary, Schedule 1 section Refund of withheld amounts by the payer to the recipient, Schedule 1 section Refund of withheld amounts by the Commissioner to the recipient, Schedule 1 section Exception-disclosure for other government purposes.

Sarah is on maternity leave from 1 May Sarah's employer does not pay her wages while she is on maternity leave. We make a revised RPN on a week 1 basis available to Sarah's employer. We adjust Sarah's tax credits and rate band by removing the Maternity Benefit.

Sarah returns from maternity leave on 1 November Her first pay day is 4 November Sarah was not paid by her employer during her maternity leave and her tax credits exceed the tax due on her Maternity Benefit. A tax refund may be due to Sarah. If Sarah did not receive one from her employer before the end of the year, she should submit an online income tax return through myAccount.

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You'll receive at least the equivalent of 10 hours a week at the minimum wage. You can find additional information on the Employment New Zealand website. How to work out your weekly income if self-employed If you're self-employed you need to calculate your own average weekly income. You can work out your average weekly income over a month period, by dividing your last 12 months net self-employed income by For your average weekly income over a 6-month period, divide your last 6 months net self-employed income by Calculations for when you have more than 1 job If you receive income from more than 1 job, you can add together the income from all your employers to work out your ordinary or weekly average pay.