One-off sign on bonus to be split and paid in 3 monthly payrolls

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(Newbie)Newbie

11 June 2021

Hi there,

We have a new employee with a one-off sign on bonus of $110K - but due to huge amount, payments will be split and include in to 3 monthly payroll starting June payroll.

Can you kindly advise if we still need to use Method A or B for calculating tax on the said sign on bonus, or we can just go with the amount computed by Xero for each month? Bonus will be split to Jun-Aug for 37K, 37K, 36K respectively.

Would there also be some effect as Jun is FY21, then Jul and Aug are already reportable to FY22?

Thank you in advance.

Judy

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