How to add a bonus payment to your staff

Please see below the step on setting up the ability to add a bonus for your staff. 


Basic Overview

The recommended approach is:

  1. Add the Bonus to an employee.
  2. Apply the changes to all the employees
  3. Process payroll and update the Bonus Amounts, If not already set.

Adding the Bonus Allowance

The allowances are added to the employees either prior to the payroll on the employee details screen or directly within the payroll using the Allowances button


If adding via the Employee Details screen select the employee, click on the pay tab and select the Edit button in the allowances section as shown below.


If adjusting within payroll use the Allowance button as displayed below.


In order to add an allowance to an employee they will first require an allowance set to be linked to their profile, this is done via the Employee Details, Pay tab. If you have a large number of employees to do this for you may want to consider using the Allowance/Deductions manager to apply a range of allowances on mass to selected employees.



When adding the Bonus allowance the basic settings are as below

 

From there a few additional questions need to be asked regarding the situation

  1. Are you required to advise the ATO of the amounts for the bonus as a separate PAYG item?

    If so then adjust the the PAYG Location to Allowances and STP Type to Bonus and Commisions fields as shown below.

  2. My bonus allowance is to be paid outside of payroll can I still record this?

    If this amount is being processed as an additional payment to the employee after their after tax payroll amount has been calculated, then you will need to adjust the Process As option to After Tax Allowance.


Applying the Bonus to the Payroll

Run the Payroll as per normal

  1. Once in the payroll (depending on if it was a before or after-tax allowance), you will see the bonus allowance. Click on the pencil to edit and add the amount for each employee.

  2. If you choose to you can add a short message to the employee that will show on their payslip for the period.

Running the Payroll for Just the Bonus

You might want to apply the bonus for your employees outside of your normal pay run. If that is the case after you run the normal payroll and you have exported the aba file. Please navigate to the location you save the aba file too and then rename the file so it doesn't get overwritten. OR you can copy the file and past it to a different location.

  1. Open up the payroll window.

  2. Select payroll for the next period

  3. Edit the period to be the same as the payroll that you have just done and ticked the No entitlements payroll tick box (This will ensure that leave is not accrued in this payrun)

  4. Go in to the payroll. (it should look something like this)
    If there are any timesheets that have been auto-generated you can delete them as they have already been processed

  5. Once in the payroll (depending on if it was a before or after-tax allowance), you will see the bonus allowance. Click on the pencil to edit and add the amount for each employee.