Pay Types - Pay Rates (Bonuses and Commissions)

🎯 If you are unsure if these Pay Rates apply to your circumstances, please refer to the Payee's Employment Contract or obtain advice from the Australian Taxation Office or Fair Work Ombudsman.

There are seven Pay Rates in the Bonuses and Commissions category,

Description	Include in W1 (Total of Salary, Wages & other payments)	Taxable (Tax Treatment)	OTE (SGAA)	Reported as	Lump Sum Type Code (PAYEVNTEMP271)	Year To Date Balances Payee Master File
Bonus	Yes	Yes (Schedule 5, Method B (ii))	Yes	Bonuses and Commission (PAYEVNTEMP262)	Bonuses and Commissions	Bonuses and Commissions
Bonus (Marginal Tax)	Yes	Yes (Marginal Tax Rate)	Yes	Bonuses and Commission (PAYEVNTEMP262)	Bonuses and Commissions	Bonuses and Commissions
Commission	Yes	Yes (Schedule 5, Method B (ii))	Yes	Bonuses and Commission (PAYEVNTEMP262)	Bonuses and Commissions	Bonuses and Commissions
Commission (Marginal Tax)	Yes	Yes (Marginal Tax Rate)	Yes	Bonuses and Commission (PAYEVNTEMP262)	Bonuses and Commissions	Bonuses and Commissions
Overtime Bonus	Yes	Yes (Schedule 5, Method B (ii))	No	Overtime (PAYEVNTEMP263)	Overtime	Overtime
Overtime Bonus (Marginal Tax)	Yes	Yes (Marginal Tax Rate)	No	Overtime (PAYEVNTEMP263)	Overtime	Overtime
Return to Work	Yes	Yes (Schedule 4 - Lump Sum W (32%))	Yes	Lump Sum (PAYEVNTEMP224)*	W	Lump Sum

PAYGW is calculated per the Payees' Tax Treatment,

	Schedule 4 - Lump Sum W (32%)	Schedule 5, Method B (ii)
Regular	Schedule 4 – Tax table for return to work payments	Schedule 5 – Tax table for back payments, commissions, bonuses and similar payments
Seniors and Pensioners
Working Holiday Maker	Schedule 15 - Working Holiday Maker (NAT 75331) Schedule 1 – Tax Scale 3 (NAT 1004) Schedule 1 – Tax Scale 4 (NAT 1004)
No TFN	Schedule 1 – Tax Scale 4 (NAT 1004)
Foreign Resident	Schedule 1 – Tax Scale 3 (NAT 1004)
Seasonal Worker Programme	Seasonal Worker Programme and Pacific Labour Scheme
Horticulturists and Shearers	Schedule 2 – Tax table for individuals employed in the horticultural or shearing industry (NAT 1013)

Bonuses and Commissions Pay Rates Explained

Bonus

Bonus applies when the Payee is being paid a bonus related to Performance within regular hours or a once-off payment, such as a Christmas Bonus, which needs to be taxed over the entire Financial Year.

The reporting of payments for Bonuses is now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Bonus is now reported separately under Bonuses and Commissions.

Payments with this Pay Rate use the $ (or % of Rate Per Hour) set within the Pay Rate, and Leave Entitlements are not applicable. These payments are considered W1 (Total of Salary, Wages, and other payments), Taxable, and OTE (SGAA).

Bonus (Marginal Tax)

Bonus (Marginal Tax) applies when the Payee is being paid a bonus related to Performance within regular hours or a once-off payment, such as a Christmas Bonus, which needs to be taxed over a single Pay Period.

The reporting of payments for Bonuses are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Bonus (Marginal Tax) is now reported separately under Bonuses and Commissions.

Payments with this Pay Type use the $ (or % of Rate Per Hour) set within the Pay Rate, and Leave Entitlements are not applicable. These payments are considered W1 (Total of Salary, Wages, and other payments), Taxable, and OTE (SGAA).

Commission

Commission applies when the Payee is being paid a bonus that relates entirely to a Commission payment.

The reporting of payments for Commission is now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Commission is now reported separately under Bonuses and Commissions.

Commission (Marginal Tax)

Commission (Marginal Tax) applies when the Payee is being paid a bonus that relates entirely to Commission, which needs to be taxed over a single Pay Period.

The reporting of payments for Commission is now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Commission (Marginal Tax) is now reported separately under Bonuses and Commissions.

Overtime Bonus

Overtime Bonus applies when the Payee is being paid a bonus related to Performance outside regular (overtime) hours, which needs to be taxed over the entire Financial Year.

The reporting of payments for Overtime Bonuses are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Overtime Bonus is now reported separately under Overtime.

Overtime Bonus (Marginal Tax)

Overtime Bonus (Marginal Tax) applies when the Payee is paid a bonus related to Performance outside regular (overtime) hours, which needs to be taxed over a single Pay Period.

The reporting of payments for Overtime Bonus (Marginal Tax) is now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Overtime Bonus is now reported separately under Overtime.

Return to Work

Return to Work applies when the Payee is being paid a bonus to encourage them to return to the employer, end industrial action and have employees resume work or withdraw their resignation.

The reporting of payments for Return to Work are now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Return to Work is now reported separately under Lump Sum Type Code = W.