Process Lump Sum Payments, Bonuses or Leave in Advance

Process Lump Sum Payments, Bonuses or Leave in Advance

In this section, you will know how to process lump sum payments directly from the pay run. Processing lump-sum payments can be done so by aggregating the tax across a number of pay periods, depending on the method selected. 

Processing Lump-sum payments using Method A or Method B(ii)

Please note that in calculating withholding amounts on lump-sum payments, you can use Method A or Method B(ii) calculation.

1. Method A - This is used when processing any additional payments regardless of the financial year in which the additional payments apply to. The detailed process of this method is presented in the second step of this article.
2. Method B - This is used when processing either back payments relating to a prior financial year and/or when processing any additional payments (including commissions, bonuses, or similar payments) that do NOT relate to a single period regardless of the financial year these additional payments apply to.