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Christmas Bonus Appears more on Wageslip?

Why give a cash bonus less than stated on wageslip?

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Hi, I have received my wageslip and in the top line is a £200 bonus. A week before, I was sent £140 cash 'Christmas Bonus' in the post, which was both unusual and unprecedented. At the bottom of my wageslip, I have had £140 deducted as a 'Cash Advance'. Could anyone explain this practice, as I have not seen it before and am worried by not querying it (my company are known for disposing of 'trouble makers'), I may be seen as complicit. We have over 100 employees and our department was not paid a bonus last year.

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28th Dec 2018 12:57

Complicit in what? Sounds like you've had a bonus of £200, with the tax and NIC shown in your payslip.

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to Tax Dragon
28th Dec 2018 12:58

And you got a £140 sub.

What's your problem ?

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28th Dec 2018 13:02

Don't worry, that all looks fine.

To get £140 in the hand, an employer does need to pay a basic rate taxpayer approx. £200 (allowing for 32% combined tax / NIC rate). £200 bonus works out as £136 net and they've obviously just rounded up for ease.

And, yes, it is correct to deduct the cash advance on the payslip. Otherwise, the net on the payslip would be too high compared to the amount you were actually due after allowing for the advance.

Don't forget that your employer also has to pay 13.8% employer NIC, so your Xmas bonus of £136 has cost them £227.60.

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28th Dec 2018 18:41

Thanks for the explanation adam.arca, that makes complete sense now. I just found it strange that got cash in the first place. Thanks again!

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By tom123
30th Dec 2018 21:00

Whilst a tad unusual, the employer probably wanted to make sure you had the funds to spend - without having to get to banks etc.

Glad it is sorted etc,

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