If an employee, who has been dismissed or has resigned, needs an In Lieu of Notice paid out, follow the steps below:
Create an addition by going to Payroll, Maintenance, General, Additions and Deductions.
Click Add.
Enter Code, Shortcut Key and Description.
Select Addition Before Tax as the Category and Amount as the Type.
Leave Amount blank.
Make any other required selections.
Click OK to save.
Next go to Payroll, Transactions, Processing, Manual Calculation.
Select the Employee.
Click the Add radio button.
Tick Generate Payment to include the Net Pay in the bank file.
Select Adds Before Tax.
Click Add and select the bonus or commission addition.
Enter the Value.
Click Bonus Calc in the bottom right-hand corner to open the Bonus Tax Calculator.
Select Lump Sum Payment and click OK.
In the Lump Sum Tax Calculator, review the Annual Earnings and update if required. Bonus Amount will auto-populated with the Value.
Tax Rate will default to Auto, you can specify a rate if appropriate.
Click Calculate Tax. This will calculate the Tax Withheld.
Then click OK. This will insert the Tax Withheld value into Tax (Incl Adjustment).
Click Process.