What do I Need to Know About Bonuses, Incentives, and Commissions?
Cash bonuses, incentives, and commissions are requested by the clients to show appreciation for your hard-work and to reward your achievements. It will be processed through your payroll to facilitate any tax deductions. Clients will cover the associated income tax. With this, you will receive the amount in your nearest pay run, following payroll cutoff dates.
For Philippines Employees:
- Employee bonuses, incentives, and commissions in the Philippines are subject to a 30% income tax and will be covered by the client.
- Confirm with your client whether the communicated amount is the net amount you will receive or if it includes the tax deduction.
For Colombia Employees:
- In Colombia, employees cover income tax on bonuses, incentives, and commissions.
- If these exceed 40% of your monthly salary, they count as part of your overall salary, raising the base for government benefit calculations. To avoid extra costs, employers may limit bonuses to 40% or spread payments over multiple periods.
If you have further questions, we're here to help!
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