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Butterfly8's avatar
Butterfly8
Experienced User
4 years ago
Solved

Could I override tax on regular bonus payment?

Hi support team.

 

I need to pay regular bonus to one of our employee. 

How should I process if I want to override tax ?

 

Thanks 

Kyu

 

  • Tracey_H's avatar
    Tracey_H
    4 years ago

    Hi Butterfly8 

     

    As explained on your other post, bonus payment Tax and super, the PAYG withholding and super obligations on all payments, including bonuses, are determined by the ATO. This information is from the ATO website which I linked in your other post:

     

    The tables in this checklist will help you identify what payments are considered salary or wages and whether they are considered part of ordinary time earnings (OTE) for super guarantee purposes. The list is not exhaustive and is for general guidance only

     

     

    According to the ATO if a payment is an Ordinary Time Earning (OTE) it must be included in super calculations. If you are not sure about your bonus payment please do check with the ATO.

     

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

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  • Tracey_H's avatar
    Tracey_H
    Former Staff
    4 years ago

    Hi Butterfly8 

     

    Thanks for your post. If you have manually calculated the PAYG amount as per the previous links I gave you, you can type the new tax amount into the PAYG WIthholding field in Pay Employee:

     

     

    Two important things to note when changing the PAYG amount:

    1. enter the amount as a negative
    2. enter the PAYG amount last so that the software does not recalculate it when you make further changes to the pay

    Please let me know if you need further help.

     

    If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • Butterfly8's avatar
      Butterfly8
      Experienced User
      4 years ago

      Thank you for your kind reply Tracey.

       

      Are we obliged to pay Super(SG)  on Bonus payments?

      or is it depends on agreement/contract between employer and employee?

       

      Thanks in advance.

      Kyu

       

      • Tracey_H's avatar
        Tracey_H
        Former Staff
        4 years ago

        Hi Butterfly8 

         

        As explained on your other post, bonus payment Tax and super, the PAYG withholding and super obligations on all payments, including bonuses, are determined by the ATO. This information is from the ATO website which I linked in your other post:

         

        The tables in this checklist will help you identify what payments are considered salary or wages and whether they are considered part of ordinary time earnings (OTE) for super guarantee purposes. The list is not exhaustive and is for general guidance only

         

         

        According to the ATO if a payment is an Ordinary Time Earning (OTE) it must be included in super calculations. If you are not sure about your bonus payment please do check with the ATO.

         

        Please let me know if you need further help.

         

        If my response has answered your enquiry please click "Accept as Solution" to assist other users find this information.

    • Butterfly8's avatar
      Butterfly8
      Experienced User
      4 years ago

      Thank you for your kind reply Tracey.

       

      Are we obliged to pay Super(SG)  on Bonus payments?

      or is it depends on agreement/contract between employer and employee?

      can I override super amount on the system?

       

      Thanks in advance.

      Kyu