Admins can define their own Bonus schemes. Bonuses can be customized to either be taxable, non-taxable, or partially taxable.
To create a Bonus Type, go to Settings > Payroll > Other Income > Bonus Types.
Note: The 13th Month Bonus Type exists as a default as it is mandatory. This can be edited depending on your company policy. For more information on how to edit the 13th Month Bonus type, click here.
To create a Bonus Type in addition to the 13th Month Bonus Type, click the Add Bonus Type button.
Fill out the fields as follows:
- Name – the name of the bonus
- Fixed Amount – the amount is fixed and depends on the company
- Salary Based - the amount will be based on the employee’s salary
- Plan - refers to how often the Bonus Type will be given
- One-Time - the Bonus will be given once
- Periodic – the Bonus will be given either annually, semi-annually, quarterly, bi-monthly or monthly
- Fully Taxable – determines whether or not the Bonus will be taxed
- Yes – the entire Bonus will be taxed
- No – only a certain part of the Bonus, if any, will be taxed
When you select No for Fully Taxable, you will need to enter an amount of the Bonus that will not be taxed in the Maximum Non-Taxable field.
You will be led back to the Bonus page and the Bonus Type you just created will be visible.
Note: After adding the Bonus Type, you might see Added to Taxable Income under the Tax Details column. This means that the Bonus will be fully taxable at the employee's tax bracket
Editing the Bonus type
You can edit the Bonus Types you create. Click the Bonus Type you want to edit and the Edit Bonus Type form will pop up.
Click Save afterwards to finalize. Otherwise, click Cancel.
Deleting the Bonus Type
You can delete the Bonus Types you created one at a time or simultaneously. To delete one at a time, tick the box of the Bonus Type you would like to delete and click the Trash button next to the Add Bonus Type button.
If you want to delete all Bonus Types simultaneously, click the tick box at the first column and a Trash button will appear next to the Add Bonus Type button. All of the boxes will be ticked. You can untick the boxes for the Bonus Types you do not want to delete. Click the Trash button.
When you click the Trash Button, a warning prompt will pop up.
Click Yes if you want to delete multiple Bonus Types simultaneously. Otherwise, click No.
You will now need to assign the Bonus Type you created to either an employee, a Department or a Payroll Group. For more information, click here.
Generating the Bonus
When Bonuses have been created and given to employees, employees can view the bonuses through their payslips.
Bonuses can only be viewed after payroll has been generated. For information on how to generate payroll, click here.
After payroll is generated, Employees can view their Bonuses.
Admins can check if Bonuses have been credited. After payroll generation click the green button at the far right of the page. You will see the pay details of the employee.