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Bonus Payments

  • 167 posts
  • # 80256

Hi

Am new to payroll so please excuse what is probably an obvious question.

Bonus payments will be subject to tax and national insurance but do they get added to the overall monthly or weekly payment and then tax and NI applied or are they treated separately.

What i am trying to determine is that if someone that is a high earner receives a bonus will that person be taxed using the 50p tax or would it be taxed separately

Any help/assistance would be appreciated

Regards

Acorn

  • 698 posts
  • # 80261

> Hi Acorn

A bonus is treated as an addition to gross pay in the pay period but is shown separately on their payslip.

Eg if someone has a normal gross of say £1000 and gets a Xmas bonus os £500 for calculation purposes the gross amount would be £1500 for the month although on the payslip you would show both items separately.

I hope this helps

Kind regards
Stuart
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  • 167 posts
  • # 80277

cheers Stuart

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