Managing pay items for back payments, commissions, bonuses and similar payments

Learn how to create pay items to be able to pay employees back payments, commissions, bonuses and similar payments.

Creating pay items for back payments, commissions, bonuses and similar payments

Back Payments, Commissions, Bonuses and similar payments are configured as either Earnings or Allowance Pay items.

To configure the pay item:

1. Go to Payroll, then Payroll settings.
2. Select Create a new Pay item, and choose either Earnings or Allowance
3. Select the relevant Calculation method from the drop down list. The calculation method determines how the pay item's values are reported to the ATO:
   1. Additional payment method A - is used when processing any additional payments regardless of the financial year the additional payment applies to. Any values associated with this payment method will report as Gross.
   2. Additional payment method B(i) - for any back payments applied to specific periods in the current financial year. Any values associated with this payment method will report as Gross.
   3. Additional payment method B(ii) - for either back payments that relate to a prior financial year or any additional payments that don’t relate to a single pay period, regardless of the financial year the additional payment applies to. Any values associated with this payment method will report as Lump Sum E.
   4. Return to work - You should use this schedule if you pay an individual to resume working for, or providing services to, you or any other entity. Any values associated with this payment method will report as Lump Sum W.

   

Read more

• Learn how to pay back payments, commissions, bonuses and similar payments