In accordance with the Payment of Bonus Act, 1965, employers are required to maintain a register containing detailed information about the bonus due to each employee, any deductions made, and the amount actually disbursed. This ensures transparency in bonus payments, helps track the applicable provisions for bonuses, and provides clarity on any pre-paid bonuses (such as Puja bonuses) or customary bonuses deducted from the total payable bonus.
Below is the format for maintaining the register that includes the required details for each employee and any deductions made. It is important to note that if any Puja bonus or other customary bonus is paid to an employee before the bonus under the Act is payable, the employer is entitled to deduct such amounts from the total payable bonus.
Format for Maintaining Register (Form C)
| S. No. | Name of Employee | Father's Name | Whether Employee Completed 15 Years of Age at the Beginning of the Accounting Year | Designation | No. of Days Worked in the Year | Total Salary or Wage in Respect of the Accounting Year | Amount of Bonus Payable under Section 10 or Section 11 | Deduction Amount (Puja Bonus/Interim Bonus/Other Customary Bonus Paid) | Net Amount Actually Paid (Amount Payable Minus Deductions) | Date on Which Bonus Paid | Signature/Thumb Impression of Employee |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | [Employee Name] | [Father's Name] | [Yes/No] | [Designation] | [Number of Days] | [Salary/Wage Amount] | [Bonus Payable] | [Puja Bonus or Other Deduction] | [Net Bonus Paid] | [Date of Payment] | [Employee Signature] |
| 2 | [Employee Name] | [Father's Name] | [Yes/No] | [Designation] | [Number of Days] | [Salary/Wage Amount] | [Bonus Payable] | [Puja Bonus or Other Deduction] | [Net Bonus Paid] | [Date of Payment] | [Employee Signature] |
| ... | ... | ... | ... |
Explanation of Columns in the Register
- S. No.: Serial number for each employee.
- Name of Employee: Full name of the employee entitled to receive the bonus.
- Father's Name: Father's name of the employee.
- Whether Employee Completed 15 Years of Age at the Beginning of the Accounting Year: A confirmation whether the employee had completed 15 years of age as of the beginning of the accounting year (important for eligibility to receive the bonus).
- Designation: The job title or designation of the employee.
- No. of Days Worked in the Year: The total number of days the employee worked during the accounting year.
- Total Salary or Wage in Respect of the Accounting Year: The total salary or wages earned by the employee during the accounting year, which is the basis for calculating the bonus.
- Amount of Bonus Payable under Section 10 or Section 11: The amount of bonus payable to the employee under Section 10 (minimum bonus) or Section 11 (maximum bonus) of the Payment of Bonus Act, 1965.
- Deduction Amount (Puja Bonus/Interim Bonus/Other Customary Bonus Paid): Any bonuses (Puja, interim, or other customary bonuses) paid in advance or during the accounting year. This amount will be deducted from the total bonus payable.
- Net Amount Actually Paid (Amount Payable Minus Deductions): The final amount of bonus that is paid to the employee after deducting the bonuses that were paid in advance (such as Puja bonus).
- Date on Which Bonus Paid: The date on which the bonus is paid to the employee.
- Signature/Thumb Impression of Employee: The signature or thumb impression of the employee to acknowledge the receipt of the bonus.
Key Points to Remember:
- Puja Bonus/Interim Bonus: If any bonus is paid before the final bonus (such as Puja bonus or customary bonus), it must be deducted from the final amount payable to the employee under the Act.
- Eligibility for Bonus: The employee must have completed 15 years of age at the beginning of the accounting year to be eligible to receive the bonus.
- Total Salary or Wage: The total salary or wage is used to calculate the bonus, and deductions are made from the amount of bonus payable.
- Payment of Bonus: The bonus can be paid before the Income Tax Return filing date, but the full and final payment should follow the prescribed date according to the Act.
Conclusion
Maintaining a Register for Bonus Payment is an essential practice for employers to ensure full compliance with the Payment of Bonus Act, 1965. The register must include comprehensive details of each employee’s bonus entitlement, any deductions (such as pre-paid bonuses), and the actual amount paid. This system helps employers stay compliant and ensures employees receive the correct bonus payment while also tracking any advances or deductions from the total payable bonus.
