When processing a bonus payout as an ad-hoc payroll without including the monthly salary, taxes may be under-calculated or excluded entirely. This happens because bonus payments, classified as additional remuneration, typically require the employee's monthly salary to determine the tax accurately. Follow the steps below to ensure an accurate bonus payout:
Process the Monthly Payroll
- Start by running your regular monthly payroll and leave it in draft.
Set Up the Bonus Payroll
- Create a separate ad-hoc payroll of the same month specifically for the bonus payout.
- Set the salary amounts to 0.00 for all employees.
- Enter the bonus amounts.
Confirm Tax Calculation
- By linking the bonus with a draft monthly payroll, the system will calculate taxes accordingly.
Additional Notes:
- If you've already run the bonus payroll without following these steps, delete it and reprocess it according to the instructions above.
- Ensure all changes are reviewed before finalizing the payroll to avoid discrepancies.
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