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How to add a Christmas message to your payslip; Understand how to manage staff that have worked a part year when you have a close down; How to manage casuals over Christmas; How to pay a bonus and dealing with the tax; How to read the leave entitlements in Xero; Reporting on leave; Leave entitlements on ACC; Closedowns Bonus and Commission Payments are taxed in a specific way based on different scenarios. This Knowledge article covers how to set up and pay Bonus & Commission Payments in Xero by applying the Tax Method B(ii) Schedule 5. Set up the Bonus / Commission Pay Item. From the Organisation Menu go to Settings > Payroll Settings Nov 25, 2022 · Bonuses must be paid via the payroll which is easy to set up in Xero. Before paying a staff bonus, you will need to set up a separate pay item ( in Settings/ Payroll settings). Xero will then do the hard work for you in calculating the appropriate amount of tax to deduct from the bonus payment, which is based on the employee’s overall salary ... In the Payroll menu, select Payroll settings.; Select the Pay Items tab.; On the left of the screen, select the pay item type Earnings.; Click Add, then select the pay item category: · Select an expense code that you want that bonus to go to in Xero > Add · Create a pay run if you are paying ordinary hours as well or an unscheduled pay run if you are just paying the bonus. · Click Add on the right to add the Bonus earnings type · Enter 1 as the hours then enter the amount of the bonus in the rate field I am an independent Xero, Xero Payroll and WorkflowMax Specialist. If you are in NZ, I'm currently offering a complimentary zoom session to answer your questions. Find me at www.livingbusiness.co.nz helen@livingbusiness.co.nz . This area we are messaging in is not part of Xero Support, it's an open discussion forum. Learn how to pick the right colors. Sign In; Sign Up; Submit a Request; Xero Payroll Settings - Wages & Allowances How to set up bonus and commissions pay items [xero] Settings Jan 3, 2023 · You can categorise them into Staff Welfare, Entertainment, Christmas Party Expenses. If you don't have these accounts in your books, you can create them from Chart of accounts. Follow these steps- Accounting> Chart of accounts> Add account> Fill in the details> Save. Christmas Bonuses. Holiday bonuses are a way to show appreciation to your hardworking staff. Ensure you record any holiday bonuses paid with the correct earnings category in Xero to ensure these are taxed correctly and reported appropriately to the ATO via STP Phase 2. Schedule the Pay Run.

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