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Hi everyone, thanks for your feedback on Schedule 5 calculations for commissions and bonuses. We appreciate you explaining how important this is for commission-based industries where commission is often the primary income.
Currently Xero payroll requires regular earnings to calculate Schedule 5 tax. We understand the current setup requires manual workarounds when employees have commission-only income.
Our product team has reviewed this idea and moved it to Accepted so it can be formally considered in future planning cycles. We'll keep you updated as things progress.
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Agree, this needs to be fixed immediately as it is going to cause huge issues for employers and employees in any commission based industries from a payroll standpoint.