On this page
What this does
A bonus run pays a bonus, a commission or retroactive pay on its own. The tax is worked out as for a payment that does not repeat every pay, so a bonus is not over-taxed.
Steps
- Go to Pay Runs and choose New pay run.
- Choose Bonus.
- Pick the Pay group, the period and the Pay date.
- Tick the employees.
- Choose Create run.
- In the grid, type the amounts in the bonus, commission or retroactive column.
- Calculate, review, approve and pay.
On the review step, the tax shows as Federal tax on bonus and Provincial tax on bonus.
Good to know
- You can also include a bonus in a regular run. The Bonus earning is taxed as a bonus there too, because its tax treatment is "Taxed as a bonus".
- A lump-sum payment such as a retiring allowance uses flat CRA rates. The review shows Federal tax on lump sum.
- CPP and EI apply to a bonus when the earning has those boxes on. Check them in the catalogue.
- A Record of Employment places bonuses by the period paid. See Vacation pay base, ledger account and ROE allocation.