To enter historical or year-to-date information, refer to Commissions – YTD.The Commission/Bonus tab is used to enter commissions or bonuses to this pay only. Unlike other pay types, a commission or bonus cannot be added to the employee record—it must be added through this window when the pay is being processed.
To enter historical or year-to-date information, refer to Commissions – YTD.
To add a commission or bonus, click on the first line and enter the details.
To edit details, click on the detail and make changes. Note that you cannot edit a past pay unless the þ 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.
1 Commission – 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.
2 Gross – Enter the total gross sales for the employee. This field is optional.
3 % 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.
4 Net – If you have entered the Gross and % Comm, Elite Payroll 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.
5 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 will calculate the correct amount of tax on the commission or bonus.
6 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.
7 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.
8 To add a new line, click Insert, or Tab to a new line. Enter details as per the above.
9 To delete a line, select the line and then click Delete. Click OK to confirm that you actually want to delete the line.
If a bonus or commission is paid in relation to a single period of one week to one month, the amount is added to any other salary or wages for that period, and PAYG is calculated along with the other salary or wages.
If the bonus or commission relates to a period in excess of one pay period, or is paid on an irregular basis, PAYG is calculated as follows:
1 The bonus or commission is divided by the number of pay periods to which it relates.
2 That amount is added to the normal salary or wages for a single pay period.
3 PAYG on the combined amount is calculated.
4 The amount of tax payable from normal pay for one period is subtracted from the combined amount.
5 The result (which represents the PAYG amount on the bonus portion) is multiplied by the number of pay periods to which the bonus or commission related.
See also
Prepare Pays – The Pays Summary window