Wagepoint 2.0 supports two taxation methods: Regular and Bonus. Certain income types are subject to bonus taxation, but the method applied depends on how those earnings are paid. This article explains which earnings are affected, how the system determines which method to use, and answers common questions.
Which income types are subject to bonus taxation?
The following income codes are subject to bonus taxation in Wagepoint 2.0:
- Bonus (Work Related)
- Bonus (Discretionary)
- Director's Fees
- Pay in Lieu of Notice
- Retiring Allowance – Eligible
- Retiring Allowance – Non-Eligible
- Retroactive Pay Adjustment
- Severance
How does Wagepoint determine which tax method to apply?
While the earnings above are eligible for bonus taxation, the method actually applied depends on what else is included in the same payroll run:
| Scenario | Tax Method Applied |
| A bonus-eligible earning is paid on its own (no other earning types in the same payroll) | Regular taxation |
| A bonus-eligible earning is paid alongside other earning types in the same payroll | Bonus taxation |
In other words, bonus taxation only kicks in when a bonus-eligible earning is combined with other earnings in the same payroll run.
Québec employees: bonus tax calculation method
Note: Wagepoint 2.0 will support employee with a province of employment in Québec beginning in July 2026.
For Quebec employees, Revenu Québec outlines two methods for calculating bonus tax — Method 1 and Method 2 — as defined in form TP-1015.F-V.
Wagepoint uses Method 2 for all Quebec employees subject to bonus taxation.
Does Wagepoint 2.0 support lump sum taxation?
Wagepoint 2.0 does not currently support lump sum taxation. If you are paying an earning that would typically be subject to lump sum taxation, you have the option to manually adjust the tax amount on Step 3 within the payroll workflow. Otherwise, bonus taxation will apply.
How does an RRSP deduction work when a payroll includes both regular and bonus earnings?
When an RRSP deduction is applied to a payroll that includes both regular and bonus earnings, the deduction will apply to the regular earnings only, meaning that the reduction at source will only apply to the regular earnings. There is currently no way to split an RRSP deduction between regular and bonus earnings within the same payroll run.
If you need a specific RRSP amount applied to each earning type separately, we recommend running an extra payroll to keep the payrolls separate.