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What is the “Tax as Bonus” flag on the payroll category setup, what does it do and how does it work?
When:
The “Tax as Bonus” flag represents that the payments being made to the particular category are a “one-time” or irregular payment. This most often surrounds Bonus payments but can also be true for lump-sum vacation payouts, retro payments, bonuses or irregular commission payments* (irregular commission payments allude to ones the employee is not normally entitled too or regularly paid)
How:
In order to understand how the “tax as bonus” category works you must first understand how a regular category is taxed.
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