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?

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?

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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. 

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