After the September and March earthquakes some companies paid their employees an ex gratia payment to help them over this unsettling period.  Originally, the IRD deemed the payments were taxable but tax changes have been introduced to respectively fix this.  This applies to any payments made within 8 weeks of either earthquakes ( some conditions do apply) If an employer has already deducted PAYE or FBT then this must be corrected either via an employers monthly schedule amendment ( IR 344) or as the fourth quarter square up for FBT.