Do your employees make monthly provision for their tax on annual bonus?

If so, please check their year-to-date bonus provision before making any annual bonus payments this December.

Why is it important?

You want to establish that they haven’t under provided (or over provided) for their annual bonus.

This is especially important for employees who may have under provided, as when the bonus is paid, it will still be paid tax free on payroll, however at tax year-end (Feb) the payroll system will recalculate and finalise the year-to-date tax. This will result in employees having to pay in unexpectedly, in February 2022.

Avoid any unwanted tax surprises and check your payroll bonus provision today!

Bonus Provision FAQs:

What is a provision for tax on annual bonus?

Which report can I print to view employee bonus provisions (tax on annual bonus)?

Browse our Sage Knowledgebase for more articles on bonus provision.