Wagepoint uses the periodic method for calculating taxes on bonuses. Learn more
You can pay bonuses during a regular pay period by entering the bonus amounts directly into the hourly or salaried employee's payroll. However, if you need to adjust the amount of tax collected or want to process it as a standalone payment, you should run it as an off-cycle payroll.
- The CRA’s Payroll Deductions Online Calculator (PDOC) provides an easy workaround to calculate taxes on the bonus using the bonus method in order to reduce the tax contributions for you and your employees.
- Contact our support team at support@wagepoint.com if you need assistance adjusting taxes on the bonus for your payroll. Please allow 1 - 2 working days for our team to complete the requested adjustments.
Select payroll dates
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Paygroup – select the paygroup for whom the bonuses are being paid and click “Next.” If you have just one paygroup, it is automatically selected.
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The payroll dates will automatically be populated based on your payroll frequency and your prior payroll.
- Pay date – use the date picker to adjust the suggested pay date, if needed. Note: you need to approve payroll three (3) business days prior to the desired pay date by 12pm EST if employees are paid using direct deposit.
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Click “Next.”
Pay hourly employees
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Hours – enter or import the hours worked for your hourly employees. If you are only paying out the bonus, you can enter 0.00 as the hours worked.
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Add / remove income types – click the orange 'Add / remove income types' link and select Bonus. Note: other earnings that are set to be paid out with each paycheque will also be included and displayed at this time.
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Pay? (default: Yes, until changed) – set the toggle to "No" if you want to exclude an employee from the current payroll. Note: once changed, the current setting will be the new default, which means you will need to set the toggle back to "Yes" when you run payroll next.
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Click “Save/next.”
Pay salaried employees
- Hours – enter the hours worked. If left blank, the app will use the Expected hours per week value or the default 40 hours per week, divided by the number of pay periods in the selected frequency. For e.g. a biweekly employee's paystub will display 86.66 hours if left blank.
- Normal pay – the app will calculate and display the gross regular wages using the salaried employee's annual rate of pay divided by the number of pay periods in the selected frequency.
- Current pay – same as Normal pay; however, you can edit the Current pay amount if you want to make adjustments for employee's who were hired or terminated in the middle of the pay period. Note: you will need to manually adjust this amount for salaried employees who accrue vacation pay when they take vacation and the accrual balance needs to be drawn down.
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Add/remove income types – click the orange 'Add/remove income types' link and select Bonus. Note: other earnings that are set to be paid out with each pay will also be included and displayed at this time.
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Pay? (default: Yes, until changed) – set the toggle to "No" if you want to exclude an employee from the current payroll. Note: once changed, the current setting will be the new default, which means you will need to set the toggle back to "Yes" when you run payroll next.
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Click “Save/preview.”
Review and approve payroll
- Click "View" to review the payroll details for each employee or "View all" to see the pre- payroll register report.
- Employees with an active bank account in the system will be indicated by a green checkmark. They will be paid using direct deposit unless direct deposit has been disabled in the company settings. Note: you will need to write paper cheques to employees who are not setup for direct deposit.
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Click the checkbox to confirm that you have reviewed the details.
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Click “Approve payroll” to finish processing your payroll.
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Payroll approved email notice – if enabled, you will get an email confirmation that payroll has been approved for the current pay period and is pending finalization.
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Reports available notice – if enabled, you will get an email confirmation that payroll has been finalized and payroll reports are available to review.
Paying employees and remitting taxes
- Navigate to the Reports > Payroll invoices tab once you have confirmation that the payroll has been finalized.
- The total amount indicated on the payroll invoice will be collected from your company bank account on the date that payroll is finalized. Ensure you have sufficient funds in your company bank account to avoid any penalties due to insufficient funds.
- Funds for net pay – this is the total amount of funds that will be collected from your company bank account to pay employees who are setup for direct deposit. This will match the Deposit summary report. Note: you will need to write paper cheques to employees who are not setup for direct deposit or if you have disable direct deposit in your company settings.
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Source deductions – this is the total amount of funds that will be remitted to the CRA/Revenu Québec on your behalf. This will match the Receiver General report, where you can find a detailed breakdown of the taxes withheld. Note: you will need to remit taxes to the government manually if you have disabled tax remittances in your company settings.
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Wagepoint processing fees – this is the total amount of fees collected for using our app.
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GST/HST sales tax – the total amount in sales tax that is calculated on the processing fees.
If applicable, the payroll invoice report will also include collections for workers' compensation, Employer Health Tax (EHT) and/or Health Services Fund (HSF).
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