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 “Bonuses and Commissions”.
Example of a component that will contribute to Bonuses and Commission:
Data Cleanse from STP1
Notes when data cleansing from STP1
If your current component has the Allowances attribute selected under Cost Reporting attribute category, please change it to Costing Other Payment, otherwise the Bonuses and Commissions attribute will not be available to tick. This is because for STP2, Allowances are reported in a separate section, same for Bonuses and Commissions, so a Bonus cannot be an Allowance, and vice versa.