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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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Suzi Silvester
supported this idea
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Hi Xero,
This is absolutely critical. I have a client that pays bonus's and commissions to 20+ employees every week and doing manual tax adjustment is extremely time consuming. As these bonuses and commissions related to a single pay period tax needs to be calculated using the standard PAYG withholding tax table as per ATO ruling.
When you add a bonus and commission pay category in Xero can we please have an option there to select the standard PAYG withholding tax table OR schedule 5.