Bonus and Commission payments
Hi Team We pay $ 30 per week to each employee if they work a full 38 hours per week as an incentive to come to work. We named the category Production Allowance and it is shown separately but include...
Forum Discussion
Hi Mantova,
I appreciate your post. When you pay a bonus or commission, AccountRight considers the total gross pay as the regular wage of the employee and taxes it as such. This means you'll have to work out and adjust the PAYG withholding on the pay manually. For the current rates of PAYG withholding on bonuses and commissions, you can refer to the ATO's tax tables or consult with your accounting advisor.
There's also a useful article you can read that provides comprehensive information about how bonuses and commission payments are handled.
Please feel free to post again anytime you require further assistance.
If my response has answered your inquiry, please click "Accept as Solution" to help other users find this information.
Kind regards,
Shella
Thank you Sheila
I've looked at the ATO definitions again and I think it would be Using Method A
Can you confirm this calculation is correct please?
Say Gross is $ 950 + $ 30 (bonus) = $ 980 PAYG tax from the table is $ 155 divide $ 980 by 52 weeks = $ 18.85 add this to $ 980 = $ 998.85 so the new PAYG would by $ 161
so an extra $ 6.00 extra per week. Does this look correct?
Do I need to then use the separate payslip and put the gross in at $ 30. PAYG $ 6.00?
Please advise thank you.
I thought a weekly incentive would just be included in the total gross wages and taxed accordingly.
Regards Robyn
Hi Shella
Would you kindly have a look at calculation in my example below and confirm as correct. I've actually made a spread sheet up with the extra payg added and will manually change the PAYG on each pay, as I'm not sure if doing a separate payslip would then mean two amounts of payments have to be made to each employee and two file sent to the bank? I may be wrong but anyway will change manually.
Regards Robyn
