You have successfully completed the process of recruiting and hiring internationally with Justworks. You've set them up with their international payments. Now, it's time to pay them a bonus for a job well done!
For off-cycle payments like bonuses or commissions, Justworks provides a straightforward process within the Payments Center, allowing you to quickly schedule and distribute these additional payments to your international employees.
This guide focuses on off-cycle payments that are scheduled in addition to an EOR employee's regularly scheduled payroll payments. These payments typically include bonuses, commissions, and any retroactive payments or additional compensation needed to supplement an employee’s regular salary earnings. It’s important to note that this section specifically addresses these types of payments, which are distinct from other payment categories such as Expense Reimbursements and Taxable Benefits.
- Expense Reimbursements: These are payments made to reimburse employees for business-related expenses they’ve incurred, such as travel or office supplies.
- Taxable Benefits: These involve fringe benefits or non-cash compensation that must be reported and taxed according to local regulations.
Accessing the Payments Center
To begin, navigate to the Payments Center on your Justworks dashboard. This option is located in the left-hand panel. Once there, select the International tab, which is specifically for managing payments to international contractors and employees.
Selecting the Payment Option
In the Payments Center, under Employee Payments, you will find three options:
- Employee Pay
- Expense Reimbursement
- Taxable Benefits and Allowances
For this process, click on Employee Pay to proceed.
Entering Employee and Payment Details
Once you’ve entered the Employee Pay section:
- Select the Work Country: Choose the country where the employee works from the dropdown menu.
- Choose the Pay Type: Select the appropriate pay type, such as a bonus or commission.
Specifying Tax Information
Depending on the country, you may need to provide specific tax information. For example, in Canada, you must define the frequency and type of bonus (discretionary or non-discretionary) as this affects the tax implications. Helpful links to government websites are provided to explain why this data is necessary, if applicable.
Setting Payment Preferences
In this section, you will configure the payment settings:
- Set the Pay Date: Align the pay date with the future pay cycles for the employee.
- Delivery Method: Choose the available delivery method for the payment.
- Internal Notes: Add notes for internal reference.
Specifying Payment Details
After hitting continue, you will be able to adjust the following about the payment, if applicable:
- Multiple Payments: Pay multiple employees at the same time if they are within the same country.
- Local Currency: View the amount each person should receive in their local currency. The screen updates dynamically to show a summary of the number of people being paid and the total amount.
Reviewing and Submitting the Payment
After you have entered all the details, click "Continue" to proceed to the summary screen. This screen will display all the settings you have configured, the employees being paid, and the total amount. After reviewing for accuracy, hit "Submit Payment".
Once submitted, a confirmation screen will appear, verifying that the payment details will be updated on the relevant invoice the following day.
Need help?
No worries! Please contact international-support@justworks.com or reach out to your International Customer Success Manager for assistance.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.