Bonuses and Commissions

(from the ATO's Business Implementation Guide)

Bonuses and commissions are typically paid as lump sum payments rather than at each regular pay period, as is the case for salary and wages:

1. Bonuses – usually made to an employee in recognition of performance or services and may not be related to a particular period of work performed.
   
   
2. Commissions – usually made to an employee in recognition of performance or services and may be calculated as a portion of the proceeds or volume of sales.
   
   

If the bonuses or commissions are paid in respect of overtime, they are to be reported as payment type - Overtime. However, if the bonuses or commissions are paid in respect of ordinary time earnings, they are to be reported as this payment type.