nz_bonus_tax_calculator
Work out the tax on a New Zealand bonus or commission, and what is left.
Use for: 'how much tax will I pay on my bonus', 'why was my bonus taxed so
much', 'what will I actually get from a $10,000 bonus', 'is commission taxed
differently'.
A bonus is an extra emolument. It is NOT taxed at a flat rate and NOT at the
person's ordinary rate. The tax is the difference between tax on
(salary + bonus) and tax on salary alone.
This is why a bonus so often looks over-taxed and is not: when it straddles
a bracket, part is taxed at the lower rate and part at the higher one, so
the effective rate sits between them and above the rate on their salary.
crosses_bracket tells you when to explain this.
ALWAYS ask for the annual salary. The same bonus costs different amounts of
tax depending on the salary underneath it, so an answer without it is a
guess.
Args:
bonus_amount: Gross bonus or commission in NZD.
annual_salary: Regular annual salary, excluding the bonus.
kiwisaver_rate: A DECIMAL, 0.03 for 3%.
has_student_loan: Whether repayments are deducted.
Returns:
Income tax on the bonus, its effective rate, ACC, KiwiSaver, student
loan, and the net amount. ACC stops at the earnings cap and student loan
only bites above the repayment threshold, both of which are handled.
An employer may deduct at a flat rate through the year and let IRD square it
up at assessment, so a payslip can differ from this and both be correct.
Input Schema
TableJSON Schema
| Name | Required | Description | Default |
|---|---|---|---|
| bonus_amount | Yes | ||
| annual_salary | Yes | ||
| kiwisaver_rate | No | ||
| has_student_loan | No |