{"id":4542,"date":"2026-05-29T22:02:13","date_gmt":"2026-05-29T22:02:13","guid":{"rendered":"https:\/\/aaxonix.com\/resources\/?post_type=glossary&#038;p=4542"},"modified":"2026-05-30T02:53:17","modified_gmt":"2026-05-30T02:53:17","slug":"bonus-zoho-payroll","status":"publish","type":"glossary","link":"https:\/\/aaxonix.com\/resources\/glossary\/bonus-zoho-payroll\/","title":{"rendered":"Bonus"},"content":{"rendered":"<style>\n.gt-body{font-family:'Poppins',sans-serif;color:#111;line-height:1.75}\n.gt-def{border-left:4px solid #E8650A;padding:16px 20px;background:#fff8f4;border-radius:0 8px 8px 0;margin:0 0 32px;font-size:1.05rem}\n.gt-section{margin:0 0 36px}.gt-section h2{font-family:'Fraunces',serif;color:#0A1628;font-size:1.5rem;margin:0 0 12px}\n.gt-example-box{background:#f0f4ff;border-radius:10px;padding:20px 24px;margin:0 0 32px}.gt-example-box strong{color:#2563EB}\n.gt-related-pills{display:flex;flex-wrap:wrap;gap:10px;margin:0 0 32px}\n.gt-related-pill{background:#f7f4ef;border:1px solid #ddd8cf;border-radius:20px;padding:6px 16px;font-size:.875rem;color:#0A1628;text-decoration:none}\n.gt-faq-item{border:1px solid #ddd8cf;border-radius:10px;padding:16px 20px;margin:0 0 12px}\n<\/style>\n<div class=\"gt-body\">\n<div class=\"gt-def\">Bonus in Zoho Payroll refers to additional payments made to employees beyond their regular salary. Two types exist: statutory bonus under the Payment of Bonus Act, 1965 (applicable to employees earning up to Rs 21,000 per month, minimum 8.33% of wages, paid before the Diwali period typically), and discretionary or performance bonus decided by the employer. Both are processed as one-time earnings in a Zoho Payroll pay run.<\/div>\n<div class=\"gt-section\">\n<h2>Statutory Bonus Under the Payment of Bonus Act<\/h2>\n<p>Employees earning up to Rs 21,000 per month are covered under the Payment of Bonus Act. The minimum bonus is 8.33% of annual wages (or Rs 100, whichever is higher). The calculation wage is capped at Rs 7,000 per month for bonus purposes even if actual salary is higher. Zoho Payroll can generate the bonus computation report to support statutory compliance.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Processing Bonus in Zoho Payroll<\/h2>\n<p>Bonus payments are added to a pay run as one-time earnings. Go to the pay run, select the employee or group, add a Bonus earning with the relevant amount. The bonus is included in the payslip for that month. TDS is computed on the enhanced gross (regular salary + bonus), which may result in a higher TDS deduction for the bonus month.<\/p>\n<\/div>\n<div class=\"gt-section\">\n<h2>Bonus and Tax Implications<\/h2>\n<p>All bonus payments are fully taxable as salary income. Zoho Payroll includes the bonus amount in the TDS computation for the month it is paid. For large bonuses, this can significantly increase the monthly TDS. Some companies spread large bonuses across multiple months to avoid a spike in monthly TDS.<\/p>\n<\/div>\n<div class=\"gt-example-box\"><strong>Example:<\/strong> A company pays Diwali bonus in October: statutory bonus of Rs 5,833 (8.33% of Rs 7,000 x 10 months) for eligible employees and a performance bonus of Rs 20,000 for senior staff. Both are added as one-time earnings in October&#8217;s pay run. TDS is recomputed on the higher October gross.<\/div>\n<div class=\"gt-related-pills\"><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/pay-run-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Pay Run<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/tds-on-salary-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">TDS on Salary<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/payslip-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Payslip<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/arrears-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Arrears<\/a><a href=\"https:\/\/aaxonix.com\/resources\/glossary\/gratuity-zoho-payroll\/\" class=\"gt-related-pill sp-content-link\">Gratuity<\/a><\/div>\n<div class=\"gt-faq-item\"><strong>What is Bonus in Zoho Payroll?<\/strong><\/p>\n<p>Bonus in Zoho Payroll is a supplementary payment processed as a one-time earning in a pay run. It covers both statutory bonus under the Payment of Bonus Act for eligible employees and discretionary performance bonuses. Bonus is fully taxable and Zoho Payroll adjusts TDS computation in the month it is paid.<\/p>\n<\/div>\n<div class=\"gt-faq-item\"><strong>How is statutory bonus calculated in Zoho Payroll?<\/strong><\/p>\n<p>Statutory bonus under the Payment of Bonus Act is 8.33% of Rs 7,000 per month (the statutory wage ceiling) for employees earning up to Rs 21,000 per month. Zoho Payroll can generate the bonus computation report. The payment is added as a one-time earning in the relevant pay run.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bonus in Zoho Payroll is a one-time or periodic supplementary payment to employees, either statutory under the Payment of Bonus Act or performance-based, processed through a pay run.<\/p>\n","protected":false},"template":"","meta":{"seo_title":"Bonus | Zoho Payroll Glossary","seo_description":"Bonus in Zoho Payroll is a one-time or periodic supplementary payment to employees, either statutory under the Payment of Bonus Act or performance-based, p","seo_keyword":"bonus zoho payroll","seo_faqs":"[{\"q\": \"What is Bonus in Zoho Payroll?\", \"a\": \"Bonus in Zoho Payroll is a supplementary payment processed as a one-time earning in a pay run. It covers both statutory bonus under the Payment of Bonus Act for eligible employees and discretionary performance bonuses. Bonus is fully taxable and Zoho Payroll adjusts TDS computation in the month it is paid.\"}, {\"q\": \"How is statutory bonus calculated in Zoho Payroll?\", \"a\": \"Statutory bonus under the Payment of Bonus Act is 8.33% of Rs 7,000 per month (the statutory wage ceiling) for employees earning up to Rs 21,000 per month. Zoho Payroll can generate the bonus computation report. The payment is added as a one-time earning in the relevant pay run.\"}]","term_type":"Business","glossary_related":"","glossary_links":""},"glossary_category":[1250],"class_list":["post-4542","glossary","type-glossary","status-publish","hentry","glossary_category-zoho-payroll"],"_links":{"self":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary\/4542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/types\/glossary"}],"wp:attachment":[{"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/media?parent=4542"}],"wp:term":[{"taxonomy":"glossary_category","embeddable":true,"href":"https:\/\/aaxonix.com\/resources\/wp-json\/wp\/v2\/glossary_category?post=4542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}