How to Process 13th Month Bonus

Overview:

The 13th Month Bonus is a government-mandated benefit or company-granted incentive given to employees, typically at the end of the year. This guide outlines how to efficiently process the 13th Month Bonus in QNE Software, ensuring compliance and accuracy in payroll calculations.

Scenario:

The HR or payroll personnel needs to process the 13th Month Bonus for eligible employees in QNE Software. This includes setting up a bonus schedule, assigning employees, configuring bonus parameters, and finalizing transactions.

Procedure:

1. Create a Bonus Ceiling for Employees:

• Go to QNE Icon > Bonus Ceiling Maintenance > Click Add Year, then Create to add the new year.
  

• Click Go, select all employees, then click Save to add them to the newly created Bonus Ceiling Year.
  

2. Create a Bonus Schedule

• Navigate to the View tab and select Schedules.
  

• Under the Home tab, click New to create a new schedule.
  

• In the Pay Group field, select Bonus.

• Click Save to create the bonus schedule.
  

3. Configure Bonus Processing Settings:

• Navigate to the View tab and open Employee Files, then select Bonuses.
  

• In the Bonus Processing Screen, click New 
  

• Enter the required details, then click Save once completed.

  • Bonus Title: Name of the bonus

  • Bonus Type: Government-mandated or company-granted

  • Calendar Year: Year of effectivity

  • Month Start/End: Bonus period coverage

  • Is Pro-Rated: Enable if applicable

  • Performance Based: Enable if bonus is based on employee performance.

  • Deduct Absences and Lates: Enable if absences and lates affect the bonus amount.

  • Include Salary Adjustment: Enable if the bonus is based on the latest salary rate.

  • Include Basic Pay: Enable if basic pay is part of the bonus computation.

  • Additional Bonuses: Additional discretionary bonuses.

4. Assign Employees to the Bonus Processing:

• In the Bonus Processing Screen, click Manage Employees.
  

• Click Add Employees, then Go to list all employees.

• Select the employees and click Save.
  

5. Compute and Finalize Bonus

• Click Reset All to compute the bonus amounts. Close all bonus-related screens.
  (Note: If Pro-Rated: enabled, the system will compute the bonus automatically and lock the Bonus Amount field. Note If not enabled, you can manually enter the Bonus Amount.)
  

• Navigate to the View tab and select Transactions.
  

• Locate and select the bonus schedule (e.g., B20241201).

• Click Add All Active, then select Yes on the prompt to include all eligible employees.
  

• Click Reset, then confirm by selecting Yes to ensure the Bonus amount reflects in the transaction.
  

Application:

HR Payroll Processing: Ensures accurate and timely disbursement of the 13th Month Bonus.

Compliance: Helps meet legal requirements and company policies.

Performance-Based Bonus: Allows adjustments based on employee performance, attendance, and salary updates.

By following this guide, payroll administrators can efficiently process the 13th Month Bonus in QNE Software, ensuring smooth and error-free transactions.