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Extra Pays

Extra Pays (or extra emoluments) are lump sum payments made to an employee and include bonuses, commissions, backpay, retiring or redundancy payments.

The IRD specifies a very complicated formula for the taxing of these lump sum payments. The purpose of the extra pays procedure in Ace Payroll is to automate the tax calculation according to this formula.

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Access extra pays from the Options button of the Pay Calculation screen - either from within a regular pay, or a one off payment.

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Select the nature of the extra pay then click Next

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Enter the amount of the extra payment then click Next

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A report shows the tax calculation and whether to tax at the higher or lower rate, with the correct rate automatically ticked.

Change if you wish, then click Next

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If paying a bonus you can easily gross up from a nett amount.

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Click Confirm and you are done.

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Why can't I change the tax deduction when I make an extra payment?

If you pay an employee using an Ace Payroll extra pay, you cannot overwrite the tax deduction with your own value.

The whole point of the extra pay routine is to allow you to make a non standard payment, but have the program calculate the tax using the very complicated formula specified by the IRD.

If you want to be able to change the tax, do not use the extra pay routine.

Enter the gross amount some other way, for example by using an allowance or entering the amount as a salary. Either of these methods will acheive the same result, but you will be able to change the tax deduction.

More on Pay Calculation

Pay Rate Setup
You can have a maximum of 20 pay rates loaded in Ace Payroll more..
Regular Payroll Procedures
The seven operations performed each pay period are listed in the order performed more..
Child Support Variation Codes
A child support variation code is used if the amount deducted is different from the usual deduction more..
Overwriting PAYE Deductions
How to overwrite PAYE with your own value more..
Public Holiday Worked
Use this method for an employee who works at any time on a public holiday more..
Checking Previous Period Is Filed
When I go to calculate my regular payroll it shows last weeks pay date. What is wrong? more..
One Off Payments
How to make a one off payment for paying bonuses, holiday pay and other payments outside the normal cycle more..
Cash Rounding Activation
Control whether to round an employee's nett pay for coin split rounding purposes more..
Extra Pays
Extra Pays are lump sum payments include bonuses, commissions, backpay, retiring or redundancy payments more..
Recording Hours Worked Each Day
How to define a pay rate to represent each day of the week more..
Pay Rate Change Mid Period
There are times you need to pay an employee two different rates for the same period more..
Minimum Wage
From 1st April 2016 the minimum adult rate is $15.25 an hour, and applies to all workers 18 years and over more..
Alphabetical Index
The Ace Payroll alphabetical index provides links to all documentation more..
Ace Payroll FAQ Contents
All the most common Ace Payroll questions grouped by categories in a short table of key words more..
Ace Payroll Frequently Asked Questions
All the most common questions we are asked at Ace Payroll listed in a question format and grouped by category more..

More on Pay Frequencies

Bi Monthly Date Calculation
A bi monthly pay frequency means there are 24 pay periods a year - two a month more..
Period End or Actual Payment Dates
The differences between using period end and actual payment dates in Ace Payroll more..
Changing All Pay Frequencies
How to change all employee pay frequencies from say weekly to fortnightly more..
Multiple Pay Frequencies
You can use multiple pay frequencies. Each of the frequencies are processed as different pay runs more..
Alphabetical Index
The Ace Payroll alphabetical index provides links to all documentation more..
Ace Payroll FAQ Contents
All the most common Ace Payroll questions grouped by categories in a short table of key words more..