Wagemaster has a lump sum payment wizard in Wages Timesheet which allows for the payment of a lump sum item with tax calculated at marginal rates. The lump-sum wizard is useful for bonus payments, commissions and back pay.
Using the Lump Sum Wizard in Wagemaster
The lump-sum payment wizard allows for the payment of a lump sum item with tax calculated at marginal rates over a specified time period. The lump-sum wizard is useful for bonus payments, commissions and back pay.
To create a lump sum payment:
- Go to Wages
- Choose the Employee
- Click on the Timesheet and put in the timesheet data if required.
- Then select Next.
- Select Lump Sum.
- Then Click Add.
- Select Next.
- Select a description of the payment from the list or type your own description, once done click Next.
- Enter the lump sum value to be paid. If a superannuation guarantee is to be calculated on top tick ‘Include in Superannuation Calculation’. Once filled in Click Next.
- Tax can be selected to calculate marginally based on a number of pay periods or a number of payslips. Select the date range. Select either Use PPE Count between select dates or Use employee payslip count between selected dates.
- Once you have filled out all the fields click Next.
- A Summary of the tax calculation will be shown. Click Next to move to the next page.
- If you would like to print the Summary Details, this information will be saved in the employee details under the Employment tab, in the Notes field. To get here:
- Select Employee > Edit Employee
- Select the employee you need to edit from the Name list
- Select the Employment tab on the left
- Then select notes
- A short summary of the payment will be shown. Click Finish to complete the wizard and return to processing the payslip.
- A Departmental Lump Sum Payment report has been created and can be located under Reports > Department > Lump Sum Payments. These items will also appear in the allowance column of the Gross Payment Reconciliation report and Payroll Cross-Check reports.
Reporting Rules for a Lump Sum E payment
Lump-Sum Payments in arrears that are equal to or greater than $400.00 must be included on the Employee’s ATO Payment Summary, against label Lump Sum E. You must also provide the employee with a letter that details over which financial years the amount was accrued and the gross amount which accrued over those years.
Where the Lump Sum Payment is less than $400.00, the gross amount should be included against the Gross Payment on the Employee’s ATO Payment Summary. No explanatory letter to the employee is required in this instance.