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Extra Emoluments
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. The purpose of the extra emolument procedure in Ace Payroll is to automate the tax calculation according to this formula.
 | Access extra emoluments from the Options button of the Pay Calculation screen - either from within a regular pay, or a one off payment. |
 | Select the nature of the extra emolument then click Next |
 | Enter the amount of the extra emolument then click Next |
 | A report shows the tax calculation and whether to tax at the higher or lower rate, with the correct rate automatically ticked. Change if you wish, then click Next |
 | If paying a bonus you can easily gross up from a nett amount. |
 | Click Confirm and you are done. |
 | Why can't I change the tax deduction when I pay an extra emolument? |
If you pay an employee using an Ace Payroll extra emolument, you cannot overwrite the tax deduction with your own value.
The whole point of the extra emolument routine is to allow you to make a non standard payment, but have the program calculate the tax using the very complicated formula specified by the IRD.
If you want to be able to change the tax, do not use the extra emolument routine.
Enter the gross amount some other way, for example by using an allowance or entering the amount as a salary. Either of these methods will acheive the same result, but you will be able to change the tax deduction.
More on Pay Calculation
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| One Off Payments How to make a one off payment for paying bonuses, holiday pay and other payments outside the normal cycle more.. |
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Extra Emoluments Extra Emoluments are lump sum payments include bonuses, commissions, backpay, retiring or redundancy payments more.. |
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Ace Payroll FAQ Contents All the most common Ace Payroll questions grouped by categories in a short table of key words more.. | Ace Payroll Frequently Asked Questions All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more.. |
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| Multiple Pay Frequencies You can use multiple pay frequencies. Each of the frequencies are processed as different pay runs more.. |
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