Year-end bonus accruals without surprises

Bonus season creates the largest single swing in payroll expense for many Taiwan employers. Finance wants a defensible accrual; HR wants the promise made to staff to survive contact with the payslip.

Agree the calculation basis in writing before December: fixed months of salary, a formula tied to profit, or discretionary pools by department. Then run a dry calculation on the current roster and compare it to last year’s payout pattern.

Unused leave payouts belong in the same conversation. If your policy pays unused annual leave at year-end or on termination, the accrual must use the same daily rate the payroll register will use later. Mismatched rates are a classic finding in our year-end payroll close support work.

Lock a cut-off date for roster changes that affect the accrual. People hired in the last week of December should not silently rewrite a number that finance already booked.