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. The purpose of the extra pays procedure in Ace Payroll is to automate the tax calculation according to this formula.
Access extra pays 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 pay then click Next
Enter the amount of the extra payment 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.
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Why can't I change the tax deduction when I make an extra payment?
If you pay an employee using an Ace Payroll extra pay, you cannot overwrite the tax deduction with your own value.
The whole point of the extra pay 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 pay 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.