How to pay bonuses outside of payroll?

In several situations, bonuses are not processed along with the payroll and are paid out separately. You may also be moving from another portal to Keka and want to enter the details of the bonuses you already paid out outside the Keka payroll process. 

In Keka, you can enter the details of bonuses already paid out or mark bonuses to be paid as to be paid outside the payroll process. 

There are 3 different ways to do this and you can also edit the bonuses that already exist or add new bonuses.  

TABLE OF CONTENTS

• Entering bonus information you have paid outside of the payroll process
  • Adding a new bonus
  • Editing an existing bonus
• Adding bonuses to be paid in the current payroll month as to be paid outside the payroll process
  • Editing current bonuses
  • Importing new bonuses in bulk
• Designating some bonuses as to be paid outside of payroll permanently

Let us look at each of these three cases and see how you can do this on Keka. 

Entering bonus information you have paid outside of the payroll process

You can either add a new bonus or edit an existing one and mark it as paid outside of Keka payroll. Here's how you do both of these. 

 Go to the search bar and search for the employee (1). Open the employee profile and go to the Finances tab (2). 

Select Pay (3) from the tabs and go to the Salary tab (4).

Here in the Salary Timeline section, you can see the current salary and the bonuses assigned to the employee currently.

Adding a new bonus

To add a new bonus, click on the three dots corresponding to the current Salary Revision in the Salary Timeline section.

Select Add Bonus from the drop-down. 

In the Add Bonus screen, enter the details fo the bonus you want to add. Select Paid in the past (Outside Keka Payroll). 

You can select the Include in Tax Calculation checkbox if the amount paid is to be included in the tax calculation for the current financial year. You can also enter the Payout Due Date and the Paid On date.  

Once you have added all the necessary details, click Save.

This will add the bonus to the employee profile. 

Editing an existing bonus

To edit an existing bonus and mark is as paid outside the payroll date, Click on the arrow to expand the section to show the breakup of the various bonuses currently assigned to the employee corresponding to the current Salary Revision in the Salary Timeline.  

Click on the three dots corresponding to the bonus you want to mark as paid outside of payroll and select Edit Bonus from the drop-down. 

In the Edit Bonus page, select Paid in Past (Outside Keka Payroll). You can also choose if this bonus is to be included in tax calculations and also enter the Paid Out date. 

Once done, click Save to update the changes. 

Adding bonuses to be paid in the current payroll month as to be paid outside the payroll process

Here, you can edit already existing bonuses to indicate that they are being paid outside the Keka payroll or import bonuses in bulk that are to be or have been paid outside the payroll processing on Keka. 

Navigate to Payroll (1) >> Run payroll (2).

If you have more than one pay group set up, select the appropriate Pay Group (3). 

Select the current Payroll Month (4) from the carousel.

Go to the Run Payroll  section and select Bonuses, Salary Revisions & Overtime. 

This will open the Employee Salary Changes window where you can make the necessary changes to bonus payments in the Bonus section.

Editing current bonuses

From the list, select the bonus that you want to edit and from the drop-down menu in the Pay Actions column, select the option Pay Outside Keka Payroll. 

This will give you 2 additional options including the Paid date as well as the option to include the payment in the tax calculations. 

Enter the necessary details and click on Save and Continue. 

Importing new bonuses in bulk

From the Employee Salary Changes window, select Import Bonus with Action.

From the Import Bonus with Action window, download the Excel Template. 

Add new bonuses or make changes to the existing bonuses in this file. You can select the various pay actions from the drop-down and also select the bonus Payout Date as well as any comments you have. 

Save the file after you have made the necessary changes or additions. You can now upload the file by clicking the Upload Excel File button on the Import Bonus With Action window.

This will add the new bonuses that are being paid outside of the Keka payroll as well as edit the existing ones if you have chosen to update these.

To learn how to use Excel to import data on Keka, click here.

Designating some bonuses as to be paid outside of payroll permanently

You can also edit the bonus settings to designate some bonuses to be paid outside of the Keka payroll process. This will ensure that these are not being processed along with the payroll and there are separate bank statements being generated for these bonus payments apart from the statement that is being generated when the salary is being credited. 

Here's how you do this. 

Navigate to Payroll (1) >>Settings (2).

Select the Pay Groups (3)  tab and locate the pay group(If you have multiple pay groups configured) for which you want to make this change. Click on the Configure (4) icon. 

Go to Other Settings (1), and select Miscellaneous Settings (2). 

Click on the three dots and select Update Settings (3).

In the Miscellaneous Settings window, select the checkbox next to Bonus to indicate that bonus payments are made separately from regular salary payments. This will ensure that a separate statement is generated for these payments and that you can pay these bonuses out when you want to.  You will however still have to process these bonuses along with the payroll finalization process. 

This is how you ensure that bonus amounts are paid outside of the regular payroll processing on Keka. 

More questions? Reach out to us and we will be happy to help!