Overtime Allowance Payment:
Where an employer makes a payment for overtime work to a qualifying junior employee during a year of assessment, and the payment is up to 50% of the basic salary of the employee for the month, the employer is required to withhold tax at the rate of 5% from the payment. Any excess above the 50% is taxed at 10%.
A junior employee is defined as someone whose annual salary does not exceed GH¢18,000.
(3 marks)
Bonus Payment:
Where an employer pays a bonus to an employee during a year of assessment:

If the bonus does not exceed 15% of the employee’s annual basic salary, the employer is required to withhold tax from the gross amount of the payment at the rate of 5%.
If the bonus exceeds 15%, the excess above the 15% is added to the employee’s income for the year and taxed at the applicable income tax rates for resident individuals.
Tax withheld under overtime and bonus payments is a final tax on the overtime or bonus payment.
(3 marks)