Bonus Management | RazorpayX Payroll

A bonus is a one-time payment to an employee given outside of an employee's total salary. You can provide bonuses, set clawbacks, edit and delete bonuses for your employees on the

Payroll Dashboard

Difference between Bonus and Variable Pay

Bonus is a non-recurring payment.
It is not included in the employee's CTC.
It can have a clawback. Suppose an employee leaves the organisation before a certain period. In that case, the employee pays the bonus amount back to the organisation during the
FNFS
process.

Examples include festive, joining, retention, milestone bonuses and more.

Setup Bonus Types

Before you create bonus for an employee, you must configure the types of bonuses applicable for your organisation.

For example, when your business cycle is seasonal, you may provide festive bonuses or profit-sharing bonuses to employees, but choose to not provide a joining or retention bonus.

To configure bonus set up:

Log in to the
Payroll Dashboard
.
Navigate to ADMIN OPTIONS → Settings → Bonus Types. Click Edit.
On the Bonus Types page, select the relevant bonuses as applicable.

You can also create a custom bonus type. Enter the name of the bonus in the text box and click Add.
Click Save.

You have successfully enabled the bonus types for your organisation. You can now create bonuses for your employees.

Create Bonus

There are two steps to create a bonus for an employee:

1. Add the Bonus Details

Log in to the
Payroll Dashboard
.
Go to ADMIN OPTIONS → People → specific employee's profile.
Navigate to Compensation & Perquisites in the employee's profile view and click Create Bonus.

The Bonuses for Employee page opens. Here you can create and manage bonuses for your employees.
Click Create a new bonus.
1. On the Create New Bonus page:
2. Select a Bonus Type from the drop-down list. Click the link under the drop-down box to modify the
  bonus setup
  of your organisation.
3. Enter the bonus amount awarded to the employee in the Bonus Amount text box.
4. Choose the Bonus Status from the drop-down list.
  - Choose Yet To Be Paid to schedule the bonus payout for the upcoming month.
  - Choose Paid Already (Outside XPayroll) to add an externally paid bonus payout.
5. Select the month and year in Payout Month. If you paid the bonus outside of Payroll, select the month and year when you paid the bonus.
6. Choose whether the TDS Deduction happens instantly or on a prorated basis.
7. Add remarks as applicable.
Click Next →.

This opens the Add Clawback Rules page. You can add a clawback rule, if applicable to the bonus (such as joining bonus).

If a clawback rule is not applicable:

Select the No, I don't have any clawback rule option.
Click Create Bonus.

2. Add Clawback Rule

Suppose an employee leaves the organisation before a certain period during which the bonus is applicable. In that case, the employee pays back the bonus amount to the organisation during the

FNFS

process.

To add the clawback rule:

Click Next → to go to the Add Clawback Rules page and select from the following options:
- No, I don't have any clawback rule.
- Yes, I have clawback rule.
  
  For example, clawback rule may not apply to a festive bonus but is applicable on a joining bonus.
1. If the clawback rule is applicable, select Yes, I have a clawback rule.
2. Add the clawback duration in the Number of Months text box.
  
  If the employee leaves within these months, the clawback is applicable and is settled during the
  FNFS
  process.
3. Click Create Bonus.

You have successfully created a bonus with a clawback rule. You can view the bonus details in the following pages on Payroll:

On the respective employee's profiles as shown in
Manage Bonus
.
Bonus Report on the banner on the Run Payroll page. You can also view the number of bonuses included in the monthly payroll here.
In the
Bonus Report
.
- You can download this report as a CSV file.
- You can also edit the bonus details from this page.

Manage Bonus

To manage bonuses provided to an employee:

Log in to the
Payroll Dashboard
.
Navigate to ADMIN OPTIONS → People → click specific employee's profile.
Go to Compensation & Perquisites → Manage Bonus. You can also view the number of bonuses provided to the employee here.

You can

create additional new bonuses

edit

delete

unpaid bonuses and manage

bonus settlement on dismissal

Edit Bonus

To edit a bonus:

Log in to the
Payroll Dashboard
.
Go to the Bonuses for Employee page as shown in
manage bonus
.
Click on the bonus to edit the details.
Change the required details on the Manage Bonus page and click Next →.
Edit the clawback rule as applicable.
Click Save Changes.

You have successfully edited and saved the changes to the employee's bonus.

Watch Out!

You can edit only the clawback period of a bonus paid via Payroll.

Delete Bonus

In some cases, you may need to cancel an upcoming, unpaid bonus. To delete a bonus:

Log in to the
Payroll Dashboard
.
Go to the Bonuses for Employee page as shown in
manage bonus
.
Click on the bin icon on a specific bonus to delete that bonus.
Click Delete now in the Delete Bonus pop-up window.

You have successfully deleted a bonus. The number of bonuses for that employee decreases in their profile view.

Settle Bonus on Dismissal

When you

dismiss an employee

on Payroll, we automatically calculate the bonus (when clawback is applicable) and settle it.

It reflects on the Full & Final Settlement form as a deduction with Bonus Recovery as the Label. You can edit the recovery amount here.

To check how the deduction reflects on the employee's payslip:

Log in to the
Payroll Dashboard
.
Go to ADMIN OPTIONS → Run Payroll.
Select the payroll month on the right pane.
Click on the Gross Pay amount against the dismissed employee's details to view the preview version of the employee's payslip.

Bonus