Mellow Blog

HR & payroll, done properly

Practical, country-by-country guides on payroll, compliance and leave — and how to treat your people as capital to invest in, not headcount to manage. Written for HR leaders at growing companies across the UK, Ireland, USA, UAE, India and Australia.

Payroll to the penny in 6 countriesERA 2025 & local compliance built inConnects to Slack, Teams, Xero & QuickBooksBuilt for teams of 10–100
Global Payroll India

Overtime, bonuses and how they are taxed in India

Overtime pay and bonuses are treated as part of an employee's gross salary under Indian income tax law, taxed at the same slab rates that apply to regular wages — there is no separate, lower rate for

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Global Payroll Australia

Overtime, bonuses and how they are taxed in Australia

Overtime and bonuses are taxed as ordinary income in Australia — there is no separate, lower rate for either. Both are added to an employee's regular earnings for the pay period, and PAYG withholding

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Global Payroll USA

Overtime, bonuses and how they are taxed in the United States

Overtime pay and bonuses are taxed as ordinary income in the United States — meaning they are subject to federal income tax, FICA, and any applicable state income tax, just like regular wages. The key

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Global Payroll UAE

Overtime, bonuses and how they are taxed in the United Arab Emirates

There is no income tax on overtime or bonuses paid to employees in the UAE — neither expatriates nor UAE/GCC nationals pay personal income tax on any element of their salary or additional earnings.

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Global Payroll UK

Overtime, bonuses and how they are taxed in the United Kingdom

Overtime and bonuses are taxed as earnings in the same way as regular salary — through PAYE, using the employee's existing tax code and National Insurance category. There is no special rate for extra

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Global Payroll Ireland

Overtime, bonuses and how they are taxed in Ireland

Overtime and bonuses are taxed in Ireland in exactly the same way as regular salary — through the PAYE system, subject to income tax, USC and PRSI. There is no separate rate or special treatment for t

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Global Payroll India

Expenses and benefits-in-kind in Indian payroll

Expenses reimbursed to employees and benefits provided in kind are taxable in India in most cases, and it falls on the employer to value them correctly, include them in payroll where required, and ded

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Global Payroll Australia

Expenses and benefits-in-kind in Australian payroll

Expenses and benefits provided to employees outside of cash salary are treated differently depending on whether they fall under Fringe Benefits Tax or can be reimbursed tax-free. Getting the distincti

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Global Payroll USA

Expenses and benefits-in-kind in US payroll

Expenses and benefits-in-kind in US payroll follow a clear but detail-heavy set of rules: some reimbursements and perks are tax-free, others must be included in employee wages and run through payroll,

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Global Payroll UAE

Expenses and benefits-in-kind in UAE payroll

Expenses and benefits-in-kind in the UAE sit outside the personal income tax framework that shapes payroll in most other countries — because there is no personal income tax on salaries or benefits her

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Global Payroll UK

Expenses and benefits-in-kind in UK payroll

Expenses and benefits-in-kind sit outside regular salary payments, but they still create tax and reporting obligations for most UK employers. Get the process wrong and you risk HMRC penalties, unexpe

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Global Payroll Ireland

Expenses and benefits-in-kind in Irish payroll

Expenses and benefits-in-kind in Ireland must generally be reported through payroll and are subject to income tax, USC and PRSI — just like cash pay. The main exception is a short list of tax-exempt

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