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I have a staff member who will be receiving commissions at a adhoc basis, but I can not find a Pay code for this. There is no pay code for Bonus/Commissions on my payroll, how do I create this, and how do I ad the correct tax amount for commissions?
1. goto payroll / payroll categories
2. on the wages tab, click new, and name your account.
3. If you want to show these payments separately in your profit and loss, click override expense account.
4. All wage categories are taxed by default, so you wont need to do anything else.
5. click on the employees button at the top to allocate this category to particular employees
If you are having further trouble, you should contact a certified consultant. Just click on the partners link on the main form page to find one in your area
Hi there @Emand,
Welcome to the Community Forum. We do hope you find it a valuable resource for all your AccountRight needs.
By 'pay code', you are referring to a payroll category in which you can enter in the commissions amount when processing payroll, is that correct? If so, @JeffreyToddhas very helpfully outlined the steps in which you have to go through to set this up. I have also included a support note below on setting up payroll categories that you may find helpful in assisting you through this process.
Please do let us know how you go, and feel free to post again should you have any other queries.
Inote that you are in NZ and presumably using MYOB Payroll.
In Oz the ATO expects that tax is spread over the whole year rather than using the default tax when the payment is made. It is fairly easily done on an excel and using the tax codes within MYOB to get the new base PAYG.
I'll just expand on @ronatbas's comments, I see you are posting from New Zealand. The New Zeland Payroll program is a little different to its Australian counterpart, which has been mentioned above.
In terms of the New Zeland Payroll program and bonus/commission it does depend on if its a regular commission or a one off. This is important to distinguish as a regular commission would be need to be included in Gross earnings and therefore attract Holiday Pay/be used in Annual Leave calculations. I would recommend speaking to the Department of Labour to see if the commission is a one off regular.
Once you have found out if its a one off or regular you can use Support Note: Paying bonuses and dealing with the tax to create the pay code and use it for an employee's pay.
If you do have any enquires regarding the process do let us know we would be happy to assist.
You will need to create a paycode in Maintain Paycodes - called Commission. This should be a Gross Earnings paycode - as commissions are normally included in the annual leave calculations. Once you have done that, then you need to go and add it to the employee required. I would tick the box "allow this rate to be modified" when creating the code. This will then allow you to just add in the amount when you come to pay the person.
When you pay commissions, you use the Tax override button and put the commission amount into the extra pay amount, then use the appropriate tax code to tax this amount only. The rest of the pay gets taxed at normal rates.