You may have instances where you wish to pay selected employees a bonus amount for the good work that they have preformed through a period. The following article details how you can add these bonus payments for your staff.

This article contains details on the following;

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.


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 PAYG Location to Allowances and STP Type to Bonus and Commissions 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".


You can also add and adjust the employee's allowance settings from the payroll screen using the Allowances button.


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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.

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Running the Payroll for Just the Bonus

You may have a scenario where you wish to apply a bonus for your employees, outside of your normal pay run. If that is the case you can do this using the Edit Pay Period options within the payroll process. 

  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 ensure that the No entitlements payroll box is checked as this will ensure that the employees will not accrued an additional amount of leave for this payrun

  4. You will now have a payroll period with (No Ent.) following the period cycle.

  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.

PLEASE NOTE: If you have any employee where there timesheets are set to auto-generate at payroll you will need to remove them manually before the payroll is processed.


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