Processing a pay with Commission or Bonus in your Payroll Software

Simplify your payroll with Elite Payroll Software

Bonuses include any a lump sum payment made to an employee irregularly such as an annual bonus, gratuities, or back pay. Commissions and bonuses must be entered correctly, in order that PAYG withholding can be correctly calculated on this amount.

1 Choose Prepare Pays from the Activities menu, or click Pays on the toolbar to display the Pays Summary window.

2 Select the employee and then click Activities>Edit Pays. The Pay Details window displays pay details for the employee.

If the employee is paid using the Spreadsheet method, the Spreadsheet Entry window is displayed. Click the drop-down list arrow in the Details column to display the Pay Details window.

Note  You cannot edit a past pay unless the ž Edit Past Pays checkbox has been selected. You also cannot edit a past pay if you have been set up as a user without the rights to edit a past pay.

3 Click the Commission/Bonus tab. To add a commission or bonus, click on the first line and enter the details

Bonus – Enter the commission or bonus name, or select it from the drop-down list. If the commission or bonus you want hasn't yet been set up, type in the name and then press TAB. When you are prompted, click Yes to add it to your drop-down list.

Gross – Enter the total gross sales for the employee. This field is optional.

% Comm – Enter the percentage amount that the employee receives from their gross sales
Example. If you need to enter 6%, enter 6. This field is optional.

Net – If you have entered the Gross and % Comm, Elite Payroll Software will calculate the total net amount to be paid to the employee. If you haven't entered the Gross and % Comm enter the total net amount to be paid to the employee.

Period – Select the period that the commission or bonus is being paid for.
Example. If you are paying a commission or bonus for a month, select monthly. That way, Elite Payroll Software will calculate the correct amount of tax on the commission or bonus.

Super – Select Yes if you want the commission or bonus to be included in superannuation calculations. Select No if you want the commission or bonus to be excluded from superannuation calculations.

Ex Tax – If the commission or bonus is non-taxable—to be added to the net after tax is calculated, select Yes in the Ex Tax column. If it is taxable—to be added to the gross before tax has been calculated, select No.

4 To add a new line, click Insert, or Tab to a new line. Enter details as per the above.

5 To delete a line, select the line and then click Delete. Click OK to confirm that you actually want to delete the line.

6 Manual tax – If for some reason you need to manually adjust the tax, Elite Payroll Software will place a check mark in the ž Manual Tax checkbox at the bottom of the window. You should only do this if you have a very good reason. If the ATO audits you and you cannot explain why the tax is different to what it should be, you may be fined. To revert to the calculated amount, click to remove the check mark from the Manual Tax checkbox.

7 Enter or modify other pay details, if required, and click OK.

8 When you have made any modifications required, the next step is to Process the Pays. Click Activities>Process Pays to open the Process Pays window.