The law says that every company has the right to establish additional payments for its employees in order to encourage and stimulate. This is called a quarterly bonus. It is paid within a certain period. Absolutely all bonuses should be displayed in both labor and collective agreements. Mention of the provision of additional methods of motivation should be recorded in the Regulation on bonuses. How to correctly calculate, for example, a quarterly premium? We will understand this article.
Grounds for bonus payment
How is the quarterly bonus paid? Quarterly incentives are issued no more than once every three business months. The basis for such incentives may be the proper implementation of all production tasks.
When the plan is overfulfilled, the payment can be increased if a similar condition is reflected in the contract. As a rule, we can talk about percentages of official salaries, and not about fixed amounts.
Can a quarter premium be lost? It usually happens that bonuses are strictly linked to the profitability of the institution. In the event that the performance data is low, a cash bonus is not issued. The employer cannot be fined for this.
What is a quarterly bonus
The cash incentive system is typical of real production. That is, we are talking about those whose volumes of released goods can be measured and compared with plans. In budgetary areas, quarterly bonuses are issued quite rarely, and only when there is the will of the employer.
With successful indicators of labor, the head of the company can issue an order for a quarterly bonus. This amount is given to a specific department of the institution, as well as to one employee, or to all employees immediately without any exception.
In the event that the conditions for quarterly bonuses are specified in collective agreements, and not only mentioned in the regulation, the incentive is issued to all employees of the enterprise. The employer has the right to set bonuses in a certain amount of money, or as a percentage of salary. In order to conduct monetary incentives, an appropriate order is issued, which is submitted to the accounting department along with a list of employees to whom it relies.
How is the premium calculated?
When the order information on the conditions for its payment is displayed in percentage terms, the quarterly bonus is calculated individually for each employee. The accrual order in a similar situation will look as follows:
- In the event that the employee worked absolutely all the days of the billing period, it is necessary to add all the amounts earned by him. Along with this, monthly bonuses are also taken into account. The resulting indicator should be divided into three. This will be the average salary for one quarter.
- The average value of earnings produces a percentage increase in premiums for the quarter.
- Thirteen percent is subtracted from the received figure, since the quarterly premium relates to income and must be taxed.
Bonus Regulation
When calculating quarterly incentives, one should rely on the Bonus Regulation. When it does not take into account the calculation of the bonus in proportion to the worked time period from the salary, the bonus value is added in full, and the number of days worked does not really matter.
In the event that the Regulation states that for periods of time when the employee has average earnings, no bonus is paid, then for such days the corresponding payment is not charged.
When the size of the premium is determined in a fixed cash ratio, you need to calculate the quarterly premium in the following form:
- The size of the payment is added to the calculated salary.
- The income tax is deducted.
- Advance payment is taken away.
- The district coefficient is calculated.
- The amount that remains must be given to the employee.
The quarterly bonus is paid in parallel with the salary of the current month at that moment. When the basic fee is charged to the employee from the actual output, the bonus is calculated as follows:
- output per quarter should be multiplied by the current premium percentage;
- wages are added, as well as a district coefficient;
- The amount of income tax is deducted.
Hourly wage
For employees with hourly wages, the bonus is calculated as follows:
- the average earnings for the last three months is multiplied by a percentage of the bonus payment;
- ready-to-issue wages are added, as well as the necessary coefficients of a district nature;
- income tax deductible;
- it turns out the amount of wages taking into account the quarterly premium.
A rather convenient way is to calculate the quarterly bonus for the personnel of a particular organization, or one employee, using the 1C software. Particularly suitable for such purposes is a patch for this tool called “Salary and HR Management”.
Factor Dependence
Premium calculations depend on many different factors, and all of them must be taken into account. Most often it happens that the prize is drawn up in relation to a specifically worked out period of time. Almost all institutions that are interested in the productivity of their enterprises issue such bonuses.
For example, a payment may be charged according to a formula where the tariff rate is divided by one month, which is then multiplied by the hours worked in days. The last indicator is taken from a time sheet that takes into account working hours. Consider the example of accruing a quarterly premium.
Example
As part of the example of calculating a bonus, one should consider the case of its calculation for an individual employee. For example, the salary of an employee of a certain institution for one month will be equal to forty thousand rubles. The Internal Regulation established a bonus of seventy percent of the total salary. In the first quarter, the employee worked for forty-five days, and, according to the schedule, their number was fifty-six. In such a situation, the size of the payment will be calculated as follows: 40 thousand x 70% / 56 x 45 = 22.5 thousand. The income tax is deducted from the total amount. Transfers to various funds are considered the same way.
In the same way, it is also possible to award bonuses to any employee. It is only important to know the set percentage of time, the number of days worked and their number according to the schedule. The quarterly bonus in 6-personal income tax is displayed.
Calculation of average earnings
When calculating the average earnings indicator, only those bonuses that were predetermined by the structure of labor remuneration are taken into account. When calculating the average earnings of an employee, it is important to take into account all the bonuses accrued to him as a continuation of the estimated time.
Exceptions are made only for premiums for the year. They relate to the composition of average earnings absolutely regardless of the time of their actual accrual. The bonus payments that were accrued for the calendar year that preceded the average earnings calculation need should be taken into account.That is, if the premium for the year was made after calculating the interim indicator, then the latter will need to be recalculated.
Monthly bonuses
Monthly bonuses, as well as those that were made for a period of more than a month, are always taken into account differently when calculating average earnings. Thus, the composition of the average income can include quarterly payments that are accrued for the billing period.
If the indicated time has not yet been fully worked out, then the quarterly incentive when finding the intermediate indicator is taken into account in full, subject to one-time compliance with conditions such as:
- the period for issuing premiums is part of the estimated;
- accrual of incentives is carried out for actually worked hours.
With the absolute development of the settlement period, the quarterly payment is taken into account regardless of the factors that included in the settlement period the time for which bonus money was accrued.
Vacation count
Accounting for quarterly bonuses in holiday payrolls is more than a hot topic. For staff in many commercial institutions, the basic amount of earnings consists of various types of incentive payments. For example, when the premium is accrued for the number of sales or services rendered.
When the employee has fully worked out the estimated time, when calculating the vacation, the quarterly figure is always taken into account on a common basis. In situations where the estimated interval has not yet been sufficiently developed, the following occurs:
- the premium, which is assigned in proportion to the worked period, is taken into account in the amount of the full amount;
- The quarterly bonus, which is calculated in a fixed equivalent, is added in strict accordance with the hours worked.
It is worth paying attention also to the months that fall into a specific time period, which is the estimated time. For example, in premiums for the third quarter, in situations where only November is taken into account at the beginning of the estimated time, payment is recorded only for two months.
Does the calculation of vacation pay take into account the quarterly bonus paid for a period that is not a settlement? When calculating vacation pay, only quarterly bonuses that were strictly assigned within the corresponding time period should be taken into account.
The bonus structure in various institutions makes it possible to motivate employees, because thanks to this they become directly interested in the results and fruits of their work.
Conclusion
The advantage of the bonus system is the nature of its flexibility. Any criteria for incentive payments can be changed without problems at the discretion of the organization’s leadership, which helps to find the most optimal incentive options. Another indisputable advantage of the bonus system is rightfully the possibility of a global decline in staff turnover. This is especially significant and relevant in modern conditions. And in order to prevent claims from employees regarding incorrect accrual of bonuses, it is necessary to carefully approach the procedure for their accrual.
Will there be a quarterly bonus, it is better to clarify at the enterprise.