Incentive Pay

Question

Incentive Pay: Our company has started the incentive pay if the employee achieves the desired outcome. Now my question is what is the best practice to record the incentive pay in Sage 50 and what are the legalities around it?we will be paying incentives every quarter.

Erzsi_I · Answer

Hi Nazish Abdul Qayyum , 
 Thanks for reaching out. You can setup an income for the inventive pay to show on an employee's paycheque. 
 Firstly, make sure there is a linked account set up for the income or deduction, and that the 'Use' column is ticked for the Income / Deduction in the employee's Payroll Ledger under the Income tab. Additionally, ensure that all the steps were correctly followed when creating the new income or deduction. 
 If you use expense groups, confirm that the linked account was indicated in the Expense Group assigned to the employee. You can check this under Setup > Settings > Payroll > Linked Accounts > Expense Groups. 
 Remember, creating a new income or deduction does not have a retroactive effect; it will appear in new paycheques, not in ones already issued. Any already posted paycheques will need to be adjusted for the income or deduction to show up. It's advisable to speak with a CPA before adjusting prior paycheques. 
 For a detailed guide on creating new payroll income or deductions, setting up linked accounts, and enabling these for employees, please refer to the provided articles: 
 
 How to resolve an issue where a new income is not showing . 
 How to create a new payroll income or deduction . 
 
 If you follow these steps and continue to face issues, don't hesitate to reach out for further assistance. 
 Warm Regards, Erzsi

Sage 50 Canada

Incentive Pay

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