Business Definition
Employers who pay employees bonus or commission payments in addition to their salary or wages should report as a separate itemise component.
It includes many different types Christmas bonus, retention bonus. sign on bonus, performance bonus, referral bonus, bonus labelled as ex-gratia but is respect to ordinary hours worked, return to work bonus after parental leave, commission payment.
If you are making a back payment or arrears payment, it may be included in bonuses and commissions.
Bonuses and commission that relate to work performed outside normal hours such as an overtime bonus must be reported as overtime.
Return to work payments should be reported as lump sum W
DataPay Setup
Components that will contribute to Bonuses and Commissions must be set up to output “Additional Payment” excluding those that are Director’s Fees or containing the “Include for Back Pay Timesheet Import”.
Example of a component that will contribute to Bonuses and Commission:
Examples of components that will NOT contribute to Bonuses and Commission:
Although this component is defined with Additional Payment, it is excluded because it has Director Fees Payment.
Similarly this component will not be included as a Bonus and Commissions because it has been set up as a Back Pay Timesheet Import component.
