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Senior Explorer **
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Entry on paycheck to account for cash bonus given

client occasionally gives out cash bonuses.  We want to capture that on the next paycheck for tax purposes.  What steps should we be sure to take?

Best answer 04-30-2019 10:01 AM

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QuickBooks Team

Re: Entry on paycheck to account for cash bonus given

Hi TammyM12! I love bonuses!

 

Your client can create a bonus payroll item and use it on his employees' paychecks. Let me show you how.

 

To create a bonus item:

  1. From the Lists menu, choose Payroll Item List.
  2. Right-click anywhere and choose New.
  3. Select EZ Setup (uses standard settings, recommended for most users) and click on Next.
  4. Select Compensation and click Next.
  5. Select Bonus, award, pr one-time compensation and click Next.

When your client run their next payroll, they can select the Bonus item in the Earnings section of the Preview Paycheck window. Then, they can enter the amount in the RATE field as shown in the screenshot.

 

 

You can check out this article for additional reference: Create Bonus Paychecks In QuickBooks Desktop Payroll.

 

If there's anything that we can help you with, feel free to go back to this thread.

 

Have a good day!

QuickBooks Team

Re: Entry on paycheck to account for cash bonus given

Hello TammyM12,

 

Welcome to the Community. Allow me to chime in and help provide additional information concerning your payroll in QuickBooks Desktop.

 

I want to let you know that you're on the right path on zeroing out the net of the transaction. You can create a deduction item and select None as the tax tracking type.

 

Here's how:

 

  1. Click the List tab at the top menu bar.
  2. Click Payroll Item List.
  3. Click the drop-down arrow next to Payroll Item.
  4. Select New.
  5. Select Custom Setup, and click Next.
  6. Select Deduction, and click Next.
  7. Enter a name, and click Next.
  8. Click Next.
  9. Select None for the tax tracking type, and click Next until you reach Gross vs. net.
  10. Choose gross pay or net pay, and click Next until Finish.

Here's a screenshot for your visual reference:

 

 

Feel free to reach out to me if you have further questions with running the payroll. The Community has your back.

3 Comments
QuickBooks Team

Re: Entry on paycheck to account for cash bonus given

Hi TammyM12! I love bonuses!

 

Your client can create a bonus payroll item and use it on his employees' paychecks. Let me show you how.

 

To create a bonus item:

  1. From the Lists menu, choose Payroll Item List.
  2. Right-click anywhere and choose New.
  3. Select EZ Setup (uses standard settings, recommended for most users) and click on Next.
  4. Select Compensation and click Next.
  5. Select Bonus, award, pr one-time compensation and click Next.

When your client run their next payroll, they can select the Bonus item in the Earnings section of the Preview Paycheck window. Then, they can enter the amount in the RATE field as shown in the screenshot.

 

 

You can check out this article for additional reference: Create Bonus Paychecks In QuickBooks Desktop Payroll.

 

If there's anything that we can help you with, feel free to go back to this thread.

 

Have a good day!

Senior Explorer **

Re: Entry on paycheck to account for cash bonus given

Since the client handed the employee a cash bonus of $50, we have to gross up the amount and the bonus would be higher, the taxes will play out, but we need the net of that transaction to be zero. So I believe we would need to set up a Misc deduction payroll item too.    

QuickBooks Team

Re: Entry on paycheck to account for cash bonus given

Hello TammyM12,

 

Welcome to the Community. Allow me to chime in and help provide additional information concerning your payroll in QuickBooks Desktop.

 

I want to let you know that you're on the right path on zeroing out the net of the transaction. You can create a deduction item and select None as the tax tracking type.

 

Here's how:

 

  1. Click the List tab at the top menu bar.
  2. Click Payroll Item List.
  3. Click the drop-down arrow next to Payroll Item.
  4. Select New.
  5. Select Custom Setup, and click Next.
  6. Select Deduction, and click Next.
  7. Enter a name, and click Next.
  8. Click Next.
  9. Select None for the tax tracking type, and click Next until you reach Gross vs. net.
  10. Choose gross pay or net pay, and click Next until Finish.

Here's a screenshot for your visual reference:

 

 

Feel free to reach out to me if you have further questions with running the payroll. The Community has your back.