Calculate the correct amount to withhold

To calculate the correct amount to be withheld from a payment of unused annual leave, you will need to know:

  • how much of the payment relates to unused annual leave
  • how much of the payment relates to a bonus or additional payment relating to that leave
  • whether or not the payment is being made for early termination of employment    
    • through genuine redundancy
    • through invalidity
    • as part of an early retirement scheme
  • if the payment is not being made under any of the above, how much of the payment is for leave accrued on or after 18 August 1993.
    Last modified: 23 Sep 2014QC 19081