Payroll Tips for a Hassle-Free Summer Break

4 December 2025

The Christmas season can create payroll challenges, but understanding the rules can help you stay compliant.


  • Annual Leave: By law, employees are entitled to four weeks of paid leave per year. To avoid last-minute staffing problems, set clear deadlines for leave requests.
  • Holiday Pay: Employees must be paid for public holidays that fall on their regular workdays. Keeping up-to-date employee records and rosters ensures accurate payment.
  • Christmas Closures: Plan ahead for any business shutdowns. You must provide at least 14 days' notice before a closure. If an employee doesn’t have enough leave, they must be paid 8% of their gross earnings since their start date or their last leave entitlement, minus any leave paid in advance if agreed upon.
  • Cashing Up Leave: If it’s part of the agreement or you choose to allow it, employees may cash up to one week of annual leave each year. However, you cannot pressure them into doing so.
  • Casual Workers: Casual employees should receive an additional 8% on top of their earnings instead of accruing leave, and this must be clearly shown on their pay slips.


With careful planning, you can keep payroll running smoothly, allowing both you and your team to enjoy a stress-free holiday season. Feel free to reach out if you need any assistance or clarification.


27 October 2026
The Christmas and New Year break brings cheer, but for small business owners, it also brings complex payroll rules. You need to make sure you pay them correctly. Get it wrong, and you risk a compliance headache.
20 October 2026
The Employment Leave Act comes into play from August 2028. Find out what the new annual and sick leave rules mean for your NZ business. 
13 October 2026
Proposed FBT changes could affect company cars, work utes and farm vehicles from April 2027. Find out what they could mean for your business.
SHOW MORE

To discuss all your account matters please call us on 09 438 1001

Green button with white arrow and text: Log in to our client portal.