Add Bonus Transaction

This topic shows how to add a $100 annual bonus transaction with a tax override for Alan Fletcher. The Inland Revenue Department classes bonuses as lump sum payments, so they are taxed as extra pays. As a result, the bonus allowance has Tax override = 'Yes" and Tax override type = "E. Extra Pay".

When you add the bonus transaction, you can enter tax override details to ensure that Alan is taxed at the correct rate for this irregular transaction.

1. Double-click Transaction View.

   The Pay Sequences form appears.

2. Click the checkbox for the manual pay.
3. Click OK.

   Transaction View appears for the manual pay.

   Note: This example uses a customised layout and a query that displays only weekly employees. See the Transaction View Customisation manual for more details.

4. Click Alan Fletcher's record.
5. Press Insert.

   You are adding a transaction to a manual pay so the Pay Header form appears.

6. Check the following values:

   Field	Value	Details
   Days worked this period	0.0000	Default value. Payments in this manual pay sequence are not related to days worked.
   Profiled hours this period	25.00	Exolvo derived this default value from Alan's employee record.
   Employee status	PMPT (Part-Time)	Exolvo derived this default value from Alan's employee record.
   Pay Method	Direct Credit	Exolvo derived this default value from Alan's employee record.
   Cheque number	Enabled when Pay Method = "Q. Cheque".

   

7. Click OK to return to Transaction View.

   In this example, Alan has permanent transactions so a Confirm message appears.

   

   You do not want to include Alan’s permanent transactions in this manual pay.

8. Click No.

   Another Confirm message appears.

   

   You do not want to include any permanent transactions in this manual pay.

9. Click Yes.

   The Select Allowance box appears.

10. Enter 210, which is the Bonus allowance code in this example.

    

11. Click OK.

    The Bonus | Details tab appears.

12. Enter the following values:

    Field	Value	Details
    Quantity	1.00	Default value.
    Cost Centre Code	(Blank)	Delete the default value.
    Important: You must remove the default Cost Centre Code otherwise you will model this cost centre to the other sales employee. When you process these transactions, Exolvo will add the correct Cost Centre Code for each employee.
    Rate Code	0	Default rate code for this allowance.
    Rate	100.0000	Bonus amount.
    Transaction start date	01/04/2013	Default value is the start date of this pay sequence.
    Transaction end date	07/04/2013	Default value is the end date of this pay sequence.

    

13. Click the Tax overrides tab.
14. Check the following values:

    Field	Value	Details
    Extra pay	Yes	You cannot edit this field.
    Override amount	0.00	Default value.
    Override type	Xtra Pay Calc	Default value because Extra pay = "Yes". You cannot edit this field.
    Redundancy or retirement Elects to tax at higher	No	Default values.
    Calculate grossed up amount	Yes	Default value.
    Grossed up annual amount	You have to process the pay to calculate this value.
    Note: You can override the calculated gross up amount by setting Calculate grossed up amount to "No" and then manually entering your own value in the Grossed up annual amount field.

15. Click OK to return to Transaction View.
16. Press Ctrl+S to save your changes.

Topic: 23352