Bonuses and Commissions - Overtime Bonus (Marginal Tax)
Jan 20, 2025
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🎯 The reporting of payments for Overtime Bonus (Marginal Tax) is now disaggregated per the Australian Taxation Office Single Touch Payroll Phase 2 guidance. Rather than being included in Gross, Overtime Bonus is now reported separately under Overtime.
🎯 If you are unsure if this Pay Type applies to your circumstances, please refer to the Payee's Employment Contract or obtain advice from either the Australian Taxation Office or Fair Work Ombudsman.
Overtime Bonus (Marginal Tax) is applicable when the Payee is being paid a bonus related to Performance outside regular (overtime) hours, which needs to be taxed over a single Pay Period.
Payments with this Pay Type use the $ (or % of Rate Per Hour) set within the Pay Rate, and Leave Entitlements are not applicable. These payments are considered W1 (Total of Salary, Wages, and other payments) and Taxable; however, they are not OTE (SGAA).
