Payment Criteria
Define the reference criteria used, such as performance achievements or specific period policies. Data sources must be clearly identified to facilitate verification.
Bonuses and Incentives Application
Manage employee bonuses and incentives based on performance achievements, periods, and company approvals before payroll processing. Consolidate data from relevant departments to ensure payment amounts align with final decisions.
Manage Bonuses and Incentives Before Payroll Processing
Bonuses and incentives may stem from individual achievements, team results, or company policies. Supporting data is often prepared by departments other than the payroll team. A clear workflow helps ensure that the list of recipients and payment amounts align with the final approved decisions.
Recipients and Amounts
Reconcile the recipient list with employee identities. Verify amounts and any agreed changes before submission to payroll.
Payment Period
Distinguish between the performance assessment period and the payment period. These may differ and must be clearly recorded to prevent duplicate entries.
Approval and Payroll
Ensure the payroll team receives the final approved decision. Keep bonuses and incentives separate from other income items so they can be checked clearly.
Consolidate Incentive Data from Multiple Departments
For instance, sales and operations teams may prepare incentives based on different criteria. Payroll requires a list of recipients, amounts, and approvals in a consistent format. Standardizing the format facilitates verification without requiring the two teams to align their specific incentive policies.
Determine Data Sources
Agree on who is responsible for preparing performance data and the proposed amounts.
Review Final Decisions
Ensure that any changes to amounts have been approved by the authorized parties.
Assign to the Correct Period
Discuss component naming conventions, reporting requirements, and the integration with payroll and tax processes.
Record How Bonuses Are Calculated and Approved
Bonuses and incentives may be linked to individual performance, team results, or corporate decisions. Administration becomes clearer when the performance period, determination criteria, and payment timing are distinguished. This information helps HR explain the components appearing on the payroll and assists the Finance team in preparing for payment. Approvals for amounts should also be based on established references so that changes do not rely solely on informal conversations.
Bonus and incentive schemes may differ between sales, operations, and other teams. Each scheme needs clear performance criteria, a calculation method, and an approver. If data is gathered just before payroll closes, the team may receive figures without knowing their source or period. Use one of your company's schemes during the demo and explain the approval process. Our team can help identify the records needed so amounts sent to payroll have a clear basis and approval.
Keep proposed amounts separate from amounts approved for payment, especially when performance figures or decisions change. During the demo, include both regular payments and occasional bonuses. Check that staff can identify the relevant period and the reason for each amount. Clear records help HR explain payments to employees and help finance review costs without reconstructing the entire approval process.
Separate the Performance Period from the Payment Period
For instance, incentives based on the previous quarter's results might be paid out in the current month. Clear record keeping helps report readers understand the context. When selecting a bonus and incentive application, use a scheme actually employed by the company, including the method for handling corrections. This ensures the discussion on system setup focuses on operational needs and data readiness before the payroll process.
Explaining bonus payments becomes easier when the achievement period, approval process, and payment timing are clearly documented. Use one of the company's actual schemes for the demonstration, including instances where value adjustments were made. This allows the team to discuss the necessary data preparation before payroll processing begins. This approach enables HR and finance teams to work with verified figures and ensures employees receive clearer explanations when these components appear on their payslips.
Sigma HRIS offers on premises and private cloud options, while Forte HRIS is cloud based. Both solutions cater to companies of various sizes, meeting specific payroll needs and IT policies. Our team assists with process mapping and application setup. Use actual company components and reports during the demo to ensure a clear discussion. Responsive support is also available to assist the HR team with any questions or issues encountered during daily operations.
Choose Sigma HRIS or Forte HRIS to Match Your Business
Both products serve small businesses through large enterprises. Their main distinction is how you deploy and manage the system. We help you choose based on operational needs and IT policies.
Choose Sigma HRIS for on premises deployment on your own servers or in a private cloud. Our team helps configure the application around your HR processes and IT policies.
Learn More
Choose Forte HRIS for a cloud based application. We help select modules, prepare records and guide users according to your HR requirements.
Learn MoreSigma HRIS and Forte HRIS are continuously updated to reflect user needs, including ESS, mobile applications and AI powered capabilities. Explore them in a demonstration using examples from your business.
Compare the ProductsHRIS Implementation Guidance and Application Support
Sigma Solusi Informatika has developed HR and payroll systems for more than 10 years. Drawing on this experience, our team can map your business processes in just a few hours.
Data Preparation and Application Setup
Start with the records and workflows you already use. We help prepare and migrate data and configure the application to fit your processes from the outset.
Application Support After Implementation
Our support team and project manager remain available after launch. We answer questions and help resolve issues so HR can keep work moving.
Bonuses and Incentives FAQs
Must bonuses be awarded monthly?
Not necessarily. The schedule and basis for awarding bonuses depend on applicable policies and agreements. The payroll team uses the approved amounts and payment periods.
What is the difference between the assessment period and the payment period?
The assessment period covers the timeframe in which performance is measured. The payment period indicates when the amount is actually paid out, following the company's established processes.
Does the app determine the company's incentive policy?
The company decides its policies and approvals. Our team helps review the records and application settings needed to support that process.
How can we ensure bonuses are not counted twice?
Record the payment item, relevant period, and approval reference clearly so the team can check for duplicate entries before processing.
What needs to be recorded if the incentive is based on achieving a target?
Record the target, verified performance results, calculation basis, and approved amount according to company policy.
What happens if the bonus amount changes before payment?
Document the reason for the change and confirm approval. Ensure that payroll processing and the payment list use the same approved amount.
Discuss Bonus & Incentive Requirements with Our Team
Tell us which tasks you want to simplify and the challenges your team faces. We are ready to demonstrate how the application works, assist with setup, and provide guidance on its use.