One-off bonus payments

Question

Hi,Our staff are currently paid their salary monthly on the last day of the month, for the month worked. I am trying to set-up a one-off bonus payment to staff to be paid on 20 Dec. Do I just select the monthly payrun for payment on 20th Dec? I tried this but the PAYE doesn't look correct. For an example, an employee with an annual salary of $120k, the PAYE on a $10k bonus was only $1,210. I would have expected it to be higher than this. What am I doing wrong? And can I have more than one payrun for the same employee in the month? eg payrun for Dec and paid on 20th Dec for the bonuses, and another payrun for Dec and paid on 31st Dec for their salary.Many thanks

doreen_p · Answer

Hi there EKM,
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You can check how the bonus was set up. Since the bonus is paid as one off payment, make sure to choose "Tax as extra pay." This ensures the correct tax treatment for the bonus. You can check this link for more information. In addition, if you need to record multiple pay runs for an employee, you can definitely do that.
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Best regards,
Doreen

ekm · Answer

Hi Doreen,Thanks, yes it is set-up as 'Tax as extra pay' but still the PAYE is only $1,210 on the $10k bonus. The total salary is $120k excluding the $10k bonus so surely the PAYE should be more than this?

doreen_p · Answer

Hey EKM,
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I'd suggest speaking to your accountant to check the setup of the bonus payment, making sure that the PAYE will be calculated correctly. You can also reach out to our support team directly on Live Chat via our virtual assistant, MOCA, or by submitting a support case via MyAccount so they can look into it.
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Best regards,
Doreen

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One-off bonus payments

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