Navigating Bonus Registers and Payments: How Do You Handle Departing Employees?

Bonus Management Queries

Q.1 Can anybody guide me on what registers we need to maintain for bonuses? How should we maintain them?

Q.2 If any staff member leaves before we calculate the bonus for that financial year, how do we pay their bonus at the time of their Full and Final settlement?

Q.3 Is it the right approach to ask them to collect it at the time of Bonus Distribution?

Regards,
Madhura

Thank you, Mr. Khola, for your reply.

In the case of A, B, C registers, I am confused. Can anybody else guide me to know more about A, B, C registers and how to maintain them?

Regards

A & B registers are to be maintained by Finance/Accounts Departments in our company. Form C is maintained by the HR department.

Hi Madhura,

Yes, A, B & C registers are available. However, all HR - Deptt. records are maintained in the C register. A & B registers are also utilized for Accounts & Finance purposes.

Thank you,
Chander
HR - Exec.

To calculate the bonus and gratuity (while calculating the same basic + HRA + DA + PA), what should be taken into consideration? Please help me understand what the limit is to qualify for the bonus.

Thank you.

Dear Madhura, I am attaching some bonus payout documentation for your reference. I too had a similar query and came across this file on the internet. I hope this helps you.

Registers to be Maintained:

- A register showing the computation of the allocable surplus referred to in clause (4) of section 2, in Form A.
- A register showing the set-on and set-off of the allocable surplus, under section 15, in Form B.
- A register showing the details of the amount of bonus due to each of the employees, the deductions under sections 17 and 18, and the amount actually disbursed, in Form C.

Additionally, Form D (Annual Returns) register needs to be maintained. Every employer shall send a return in Form D to the inspector so as to reach him within 30 days after the expiry of the time limit specified in section 19 for the payment of bonus.

Please refer to the below website for the formats of the registers: HRindiaonline.com – forum where potential meets opportunities. (Search on CiteHR | Search on Google)

I hope this information is helpful.

Regards,
Rosa

Hello, I was wondering when I went through this post. I am working with one of the MNCs where we have outsourced our CA/Accounting work. As I joined recently in this company, I don't have an idea whether they are maintaining the register or not. This is an IT company; do the same rules apply to the IT MNC as well? Kindly guide me on this. Being a new HR, what will be my responsibilities in this case?

Regards, Harshada