Extra Pays (or extra emoluments) are lump sum payments made to an employee and include bonuses, commissions, backpay, retiring or redundancy payments.
The IRD specifies a very complicated formula for the taxing of these lump sum payments. Ace Payroll automates the tax calculation according to this formula.
|title||To pay an extra pay|
- From the front screen click Calculate Pays and select an employee, then click Options > Extra Pays.
Select the type of extra pay then click Next.
- Enter the amount of the extra payment, select whether the payment should be included in the employee's gross earnings for the calculation of Holiday Pay rates, then click Next.
- The Confirm Tax Calculation window opens, and the correct rate is automatically ticked. If you need to change this rate, select a rate.
- Click Next.
- Select Gross Amount or Nett Payment, then click Next.
- Click Confirm, and you are done.