How to Pay Bonuses

The following instructions apply to Regular or Incentive Production Bonuses.

From the Maintenance menu choose Allowances to open the Allowances Maintenance window.
Using the first free allowance code, add an allowance called "Bonus".
Select the Taxable option.
Set the Calculation Method to "Fixed Dollar Amount".
Leave the Amount at zero.
The allowance is generally liable for holiday pay (tick the Add to Gross for Holiday Pay box).
Click Save or press F10 to save.
Open the Current Pay and select the employee you want to pay.
Click the Allowances button to open the Allowances window.
Click Add or press F4 to add a new allowance, then type in the allowance code number you created in step 2.
Enter the dollar amount you want to pay.
Click Save or press F10 on all screens to save.

Bonuses and the STC Tax Code

Bonuses/Extra Pays are taxed differently when the employee is using the STC tax code; the rate of taxation differs if the Extra Pay is classified as a bonus or a retirement/redundancy payment. To allow for these cases, three special use Allowances are installed with Exo Payroll:

STC Bonus Excl HP - Use this allowance when paying a bonus that is not liable for Holiday Pay to an employee who is using the STC tax code.
STC Bonus Incl HP - Use this allowance when paying a bonus that is liable for Holiday Pay to an employee who is using the STC tax code.
STC Redun/Retire Pay - Use this allowance when paying redundancy or retirement pay to an employee who is using the STC tax code.

In the process above, ignore steps 1 - 7, as there is no need to create a new Allowance; instead, at step 10, select the appropriate STC Bonus Allowance.