Hi , is there a plan in the pipeline to automatically calculate the PAYE on bonus/commissions rather than having to manually calculate and override the PAYE in payroll? Other payroll systems calculate this automatically.
Hi Janelle6,
Thank you for your post.
We appreciate your patience with this. When paying a bonus or commission, MYOB treats the total gross pay as the employee's regular wage and taxes it accordingly. This means you'll need to calculate and manually adjust the PAYG withholding on the pay. For the current rates of PAYG withholding on bonuses and commissions, check the Inland Revenue website. You may have a look at this help article, bonus and commission for the detailed information with this.
If you need further help, don't hesitate to start a new post and we'll be happy to assist.
Otherwise, if my response has answered your enquiry, please click "Accept as Solution" to assist other users find this information.
Cheers,
Shella
Hi Shella
Yes I am aware and know how to do the manual calculation for PAYE on commission and bonuses. I was asking whether this will be automated like many other payroll systems are so that it takes out the need for manual calculation, which is quite archaic. Most payroll systems have algorithims in the background that can recognise it as an extra payment and tax it at the appropriate rate.
Hi Janelle6,
Thanks for the response.
Apologized for the late response. We understand how this is important to know about the calculation of PAYE with bonuses. We appreciate your patience with this. Bonuses are commonly used as staff incentives, but there is often confusion about how to process the tax on bonuses paid. This helpful article, about paying bonuses and dealing with the tax will give you the full detailed information to assist you with this matter.
If you need further help, don't hesitate to start a new post and we'll be happy to assist.
Regards,
Earl
