minimum wage with bonuses
Minimum wage currently only looks at salary/regular earnings but what about guaranteed bonuses that count in minimum wage? For an employee on a very low basic - lower than minimum wage but with a very high percentage of turnover bonus taking salary to 6 figures e.g. a senior or a sales person then clearly they are not on minimum wage but your software would flag or report them as below the minimum.
Is it not possible to have a guaranteed bonus item in the payroll template so that this is added to the minimum wage calculation every month? Also if variable then another box showing on the payslip adding the regular earnings and guaranteed bonus for that month?
There must be lots of people on non standard agreements in sales or in senior positions where there are bonuses and this would be useful but I guess we will see by how many vote for it! Hope it's a useful addition.
Dave Evans
shared this idea
Hi Dave
Good news, you can already achieve this within Xero's Payroll settings.
To ensure your guaranteed bonuses or commission are included in the Minimum Wage calculation you just need to make sure the pay item is Subject to National Minimum Wage calculations:
- Go to Payroll settings > Pay Items.
- Click on the Bonus pay item you use for these employees (or create a new one specifically for "Guaranteed Bonus").
- Tick the checkbox labeled Subject to National Minimum and Living Wage calculations.
- Click Save.
Once enabled, Xero will add these bonus amounts to the employee's base pay for that period when performing the minimum wage checks.
Check out the Xero Central link on National Minimum Wage alerts in Xero.
If you need an extra hand you can raise a case with our Xero Support team. 😊
