If you’re wanting to pay out a bonus, it’s very important to be aware of how this should be processed. Discretionary or irregular payments are not part of Holiday Pay Liable Earnings and the annual leave rates are not affected. This is very different from a Regular or Non-Discretionary bonus or payment that is part of an employee's remuneration package. Please review Employment New Zealand website to make sure you are using the correct pay element.
They are taxed as a Lump Sum and or Extra Pay and are subject to standard legislative Paye, Student Loan and KiwiSaver deductions.