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Bonus and commission payments

There's two ways to pay an employee a bonus or commission:

  • include the payment on the employee's regular pay, or

  • process the payment in a separate pay (if this helps you or the employee keep track of these payments).

Tax on bonus and commission payments

When paying a bonus or commission, AccountRight treats the total gross pay as the employee's regular wage and taxes it accordingly. This means you'll need to calculate and manually adjust the PAYG withholding on the pay.

For the current rates of PAYG withholding on bonuses and commissions, check the ATO's tax tables or speak to your accounting advisor.

Superannuation on bonuses

Some bonus payments need to be included in your superannuation calculations. To clarify if your bonus payments should accrue super, check the ATO guidelines or speak to your accounting advisor.