The 13th Month Bonus Type exists as a default in the system as this is a mandatory bonus.

You can, however, make edits to the 13th Month Bonus Type based on your company policies. To edit the 13th Month Bonus Type, go to Company Setup>Payroll>Other Income>Bonus Types.

The 13th Month Bonus Type default is salary-based and given periodically.  It is also added to taxable income, and is considered when computing for withholding tax.

If you would like to edit this bonus, Click the 13th Month Bonus Type and the Edit Bonus Type form will pop up. 

If you would like the bonus to be fully taxable, select Yes under Fully Taxable.

If you would like the bonus not to be fully taxable, select No under Fully Taxable. The Max Non-Taxable field appears. Here, enter the amount that is not to be taxed.

In either case, click Save when you are done editing. Otherwise, click Cancel.  

You will then need to assign the 13th Month Bonus Type to either an employee, a Department or a Payroll Group. To find out how, click here.