Bonus Pay Elements

If you’re wanting to pay out a bonus, it’s very important to be aware of how this should be processed. Discretionary or irregular payments are not part of Holiday Pay Liable Earnings and the annual leave rates are not affected. This is very different from a Regular or Non-Discretionary bonus or payment that is part of an employee's remuneration package. Please review Employment New Zealand website to make sure you are using the correct pay element.

They are taxed as a Lump Sum and or Extra Pay and are subject to standard legislative Paye, Student Loan and KiwiSaver deductions.

It is much easier to enter a gross amount and have the tax calculated instead of deciding on a set amount going into an employee's take home pay or in cash and working back.

For more information here Inland Revenue Lump Sum or Extra Pay

For more information here Employment New Zealand - go to Discretionary payments and Gross Earnings

For more information here Payment Pay Elements

For more information here Bonus - Christmas

Timesheet Entry

Payroll > Enter > Enter Timesheets
Select the Employee's Name
Enter 1 the Green Qty box.
Select > BON - Bonus (Irregular) from the drop down menu
Enter the Amount (Gross) of the payment in Rate box
+Add
You can add Notes by clicking on this entry
Save OR
Use the Private Payslip Message OR
Edit Global Payslip Message to display the same message to all employees (remove this message after this pay has been Closed).