What will happen to the tax paid on the bonus provision if the Automatic Bonus / Tax Spread component is cancelled prior to the bonus pay-out?

This applies to all PaySpace editions.

If the Automatic Bonus / Tax Spread component is cancelled before the end of the provision period and the bonus has not yet been paid, the tax already paid on the provision will be refunded and no bonus pay-out will be made.

Step 1 : Automatic Bonus / Tax Spread setup in July 2024.

Package | 15000.00

July 2024 to February 2025 [8 months] | 15000.00 / 8 = 1875.00 [Automatic Bonus / Tax Spread]

July 2024 Payslip on setup of the  Automatic Bonus / Tax Spread

July 2024 Tax Breakdown with  Automatic Bonus / Tax Spread

Step 2 : Automatic Bonus / Tax Spread cancelled in August 2024.

Package | 15000.00

August 2024 | Component deleted
July and August 2024 | 1875.00 + 1875.00 = 3750.00 [to be reversed]

August 2024 Payslip once the Automatic Bonus / Tax Spread is deleted on the Employee Recurring Screen


August 2024 Tax Breakdown after deleting the Automatic Bonus / Tax Spread. 

• Related Articles

• How do I setup the Automatic Bonus / Tax Spread component?

  This feature is available on all Deel Local Payroll powered by 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 ...

• How do I remove the Automatic Bonus / Tax Spread component from an employee's payslip?

  This feature is available on all Deel Local Payroll powered by payspace payroll 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 ...

• Payroll Processing | Recurring Payroll Components

  A Recurring component refers to a regularly appearing component in an employee's payroll that is a part of the employee's regular compensation package. These components are calculated and included in each pay period, and are an essential part of an ...

• Components | The Types of Components in PaySpace

  Overview Components refer to the various payroll items that are added and displayed on the Recurring Payroll Components and Edit Payslip screens. This includes allowances, deductions, company contributions, fringe benefits, personal contributions and ...

• Will an employee's Basic Pay automatically be prorated if the effective date on their Pay Rate Details screen falls in the middle of a month?

  An employee's Basic Pay will not automatically be prorated if the effective date on their Pay Rate Details screen falls within the middle of a month. Navigate > Employee > Basic Information > Tax Profile > Employment Navigate > Employee > Payroll ...