nz_lump_sum_tax_calculator

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Tax on a New Zealand redundancy or lump sum, by IRD's rate table. Use for: 'how much tax on my redundancy', 'what will I get from a $40,000 redundancy payment', 'is redundancy taxed differently', 'tax on a retirement payment', checking a redundancy letter. TWO RULES MAKE REDUNDANCY DIFFERENT AND BOTH ARE EASY TO MISS. Redundancy and retirement payments carry NO ACC earner levy, so they always take the lower rate column whatever the income, and NO KiwiSaver is deducted from them at all. Treating a redundancy like a bonus overstates the deductions twice over. Pass payment_type correctly. This applies IRD's published rate TABLE, where annualised income plus the lump sum picks one flat rate charged on the whole payment. That is what an employer deducts on the day. nz_bonus_tax_calculator computes the same tax the exact way instead, which is roughly where the year-end assessment lands. Both are right; they give different answers. Use this one to check a letter or a payslip, and say which method you used. ALWAYS ask for the annual salary. It selects the rate, so the answer depends on it entirely. Args: lump_sum: The gross lump sum in NZD. annual_salary: Annual salary, used as the annualised income. payment_type: redundancy, retirement, bonus, commission, holiday_pay, exit_inducement or back_pay. kiwisaver_rate: A DECIMAL. Forced to zero for redundancy and retirement. has_student_loan: Whether 12% comes off the lump sum. Returns: The rate selected with why_that_rate explaining which row and why, the PAYE, other deductions, and the net amount received.