Bonus (Marginal Tax) Explained (System Default Pay Rate)
Nov 16, 2024
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🎯 The reporting of payments for Bonuses are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Bonus (Marginal Tax) is now reported separately under Bonuses and Commissions.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Bonus (Marginal Tax) is applicable when the Payee is being paid a bonus related to Performance within regular hours or a once-off payment, such as a Christmas Bonus, which needs to be taxed over a single Pay Period.
Bonus (Marginal Tax) uses the $ (or % of Rate Per Hour) set within the Pay Rate , and Leave Entitlements are not applicable. Payments with this pay type are considered W1 (Total of Salary, Wages & other payments), Taxable and Ordinary Time Earnings (OTE).
