How do I setup the Automatic Bonus / Tax Spread component?
This feature is available on all PaySpace editions
An employee may choose to spread the tax on a guaranteed bonus over the tax year using the Automatic Bonus/Tax Spread component . This should ideally be processed in March and will result in the employee being taxed on a monthly portion of the bonus instead of paying all the tax in the bonus month.
Step 1: Create the Automatic Bonus / Tax Spread Note component on company level.
Navigate > Configuration > Payroll > Payroll Config > Payroll Components
Search the Catalogue
Specify the Details. Example below.
Step 2: Add the component on employee level, this can be done individually on the Recurring Payroll Components screen or collectively via the Bulk Actions screen.
Option 1: The Recurring Payroll Components screen.
Navigate > Employee > Payroll Processing > Recurring Payroll Components > Notes
Option 2: The Bulk Actions screen
Navigate > Bulk Actions