Lump Sum Payment

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:

1. Go to Wages
2. Choose the Employee
3. Click on the Timesheet and put in the timesheet data if required.
4. Then select Next.
5. Select Lump Sum.
6. Then Click Add.
7. Select Next.
8. Select a description of the payment from the list or type your own description, once done click Next.                           
9. 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.
10. 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. Please note: You cannot select the current PPE because the purpose of the Lump Sum Payment Wizard is to calculate the tax on the lump sum payment amount you’re paying in the current PPE using the pays you already processed whereas the current PPE you haven’t got the payslip saved yet. For example, if you are paying a Bonus for the last 12 months,  in the current PPE, it’ll be 12 months back from the previous PPE that you already processed.
11. Once you have filled out all the fields click Next.
12. A Summary of the tax calculation will be shown. Click Next to move to the next page.
13. 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:
    1. Select Employee > Edit Employee 
    2. Select the employee you need to edit from the Name list 
    3. Select the Employment tab on the left
    4. Then select notes
14. A short summary of the payment will be shown. Click Finish to complete the wizard and return to processing the payslip.
15. 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. 

Read this further to know more About The Contents Of ATO Payments Summaries