Annual Payment
You can use the Annual Payment system item to add this kind of payment to your employees' payslips – individually or in bulk.
👉 How-To Guides¶
How to add an annual payment individually¶
- Go to Employees, and select the relevant employee.
- Next to the Payslip Inputs heading, click the Add button.
- Click Annual Payment (under Income).
- Enter the Amount.
- Click Save.
How to add annual payments in bulk¶
- Go to Employees > Bulk Actions.
- Under Payroll Inputs, click Payslip Inputs.
- Confirm that your filters are correct (Pay Point, Pay Frequency, and Period).
- Click the first drop-down, and select Annual Payment (under Income).
- In the Add column, check the boxes for the relevant employees.
- Enter the amounts in the Annual payment column.
- Click Save.
📌 Quick References¶
Item details¶
- System item name
- Annual Payment
- Category
- Income
- SARS code
- 3605
- Frequency
- Enter amount per payslip (doesn't carry over).
- Use case example
- 13th cheque
Tax treatment¶
- Taxable percentage
- 100% taxable
- Taxable income type
- Irregular income
- Subject to PAYE?
- Yes
- Subject to UIF?
- Yes
- Subject to SDL?
- Yes
🔍 FAQs¶
Will the annual payment affect my employee's tax?
Yes. Annual payments are classified as irregular income by SARS. The tax on the annual payment is calculated based on the employee's projected total income for the year.
Can I process more than one annual payment?
Yes, but you can add the item only once per payslip. Add it again in any pay period when you need to make another annual payment.
What's the difference between annual payments and annual bonuses?
Annual payments are contractual obligations (for example, a 13th cheque). Annual bonuses are performance-based payments (for example, a performance bonus). They are treated the same for tax purposes (SARS code 3605).
The Annual Payment item could be useful if you're paying a bonus, but you don't want the word "bonus" to appear on the payslip.
Why isn't the Annual Payment option showing when I try to add it?
Click Add next to the Payslip Inputs heading (not the Regular Inputs one). If you've already selected the item, it should display in the Payslip Inputs section.