If you are currently in a new financial year but wish to pay out and record a Bonus/AWS as part of the previous financial year’s income to employees, you can choose to do so with Talenox’s new pay item created for this specific scenario.

An example of this would be if you’d like to process a Bonus/AWS paid out in the year 2023 but declared as 2022's income during tax reporting.

When processing the new financial year’s payroll, you can make use of these 2 pay items under the Ad Hoc Payment/Deduction tab to process these amounts so that they will be pulled into the previous years’ income reported in tax forms:

1) Prior Year Bonus

2) Prior Year AWS

Using these pay items will ensure that the Bonus/AWS amounts will be reported in the relevant Year of Assessment in tax forms (IR8A) generated by Talenox.

Not to worry though, we’ve clarified with CPFB and these amounts processed will still contribute towards CPF calculations in the current payroll month you are processing (for example, if you are paying out the Prior Year Bonus for Dec 2022 in Jan 2023, the bonus amounts will contribute towards CPF calculations in Jan 2023 payroll instead).

NOTE: Do ensure that you process this Prior Year pay item first before you generate tax forms for the previous YA in the system.

This is to ensure that the prior year amounts are captured in your employee tax forms accurately.