I think quarterly would give sufficient balance to a fair payment, although you need to factor in any annual bonus for a wage earner. That would inflate a quarter significantly and unfairly prejudice the paying party.
If quarterly earning were judged and any annual bonus factored in over a year that would be fair. A weighting between quarterly earnings and rolling 12 month period.
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Quarterly, which an option to request a review if anything drastic should occur.
3 months for waged, 3-6 months for self employed or variable earners
Adjustments each month make it hard for families to budget. 3 months is better and means any fluctuation in incomes can be averaged
In a situation where you have a salary / wage earner a quarterly assessment is a fairly simple process as all the information is available and any one off payments can be taken into account and be annualised. However, where you have a self-employed business owner who only receives an annual shareholder salary allocation from their business establishing a payment on anything other than an annual basis is going to create a situation where that business owner is either guessing (and if they get it wrong and over pay who is going to pay this back?) or the business is going to have to send additional money on compliance which most small NZ businesses can ill afford.