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Managing holiday, bonus, and other pay types in QuickBooks Online Core Payroll

by Intuit•39• Updated about 17 hours ago

Learn how to provide your employees with additional compensation beyond their regular pay. This could include things like bonuses, overtime, or reimbursements for expenses. QuickBooks Online Core Payroll helps you manage these extra payments and handles the necessary tax calculations.

This article is for customers who use QuickBooks Online Core Payroll.

Key things to note

HMRC reporting:

  • You might need to tell HMRC about certain expenses and benefits you give your employees at the end of the year. This includes things like company cars or health insurance.
  • Keep clear records of all expenses and benefits. HMRC may ask to see them.

Tax information:


Add a pay type

Add or edit employee's base pay

  1. Go to Payroll and select Employees (Take me there). 
  2. Select your employee. 
  3. From Base pay, select Start or Edit.
  4. Add or edit your employee’s base pay info:
    • Compensation type (Hourly, Salary, or Commission only)
    • Pay frequency and Salary (for Salary base pay)
    • Rate per hour (for Hourly base pay)
    • Typical hours
      Note: The fields may vary based on the compensation type.
  5. Select Save. 

Add additional pay types

  1. Go to Payroll and select Employees (Take me there). 
  2. Select your employee. 
  3. From Additional pay types, select Image Alt Text Add.
    Note: If you are adding for the first time, select Start.
  4. Select a pay type category from the Pay type ▼ dropdown.
  5. From the Name ▼ dropdown, select an existing pay type or enter the name of the brand new pay type you’d like to create and select + New pay type.
    Note: This field may not be available for all pay types.
  6. Select or enter remaining details, as applicable.
  7. Select Save. 

Edit additional pay types

  1. Go to Payroll and select Employees (Take me there). 
  2. Select your employee. 
  3. From Additional pay types, select Edit.
  4. Edit the fields as required.
  5. Select Save.

Can’t find an existing pay type?

Ensure that the pay type you’re looking for is active.

If you don’t see the pay type you’ve previously added from the Pay type ▼ dropdown, you need to select a pay type category first. Once you select a pay type category, you’ll see the custom pay types you’ve previously added for this category. For example, if you’re looking for the custom Hourly pay type called “Line cook”, select the Hourly category first from the Pay type ▼ dropdown, then you’ll find it and all the custom pay types under this category in the Name ▼ dropdown.


Overtime pay explained

  • Overtime is extra pay for hours worked beyond the regular work hours.
  • You only have to pay overtime if it's explicitly stated in your employee's contract.
  • If you pay overtime, the contract should state the overtime pay rate.
  • QuickBooks allows for overtime multipliers of 1.0, 1.5 and 2.0. If you have a different multiplier you will need to create a new pay type.
  • For more information on overtime rights, check the official GOV.UK website.

Bonus pay explained

  • Bonuses are extra payments, like a thank-you or for special occasions.
  • Bonuses are considered earnings, so you must deduct taxes and report them to HMRC.
  • For more information on Bonus payments, check the official GOV.UK website.

More help

Looking for guidance on navigating QuickBooks Online Core Payroll? Check out this resource page with how-to guides to help you.

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