Bonus Pay Elements
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
IR Lump Sum or Extra Pay
For more information here
Employment New Zealand - go to What 'discretionary payments' means section
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) or BON2 (Regular) 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).
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