To find out more on lump sum payments (paid annually or as special bonuses) and cover such things as: retiring or redundancy payments, gratuities, backpay, restrictive covenant or exit inducement payments, use the following link to the IRD website: http://www.ird.govt.nz/payroll-employers/make-deductions/staff-benefits/bonuses/emp-ded-bonus-lump-sum.html