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Level 1

bonus payroll

I chose 'enter net amount' for bonus calculation.  I have one employee whose calculation seems to be wrong.  We want to pay a net bonus of $800 taxes are approximately $200 but the gross check shows at $900.  All other employees show $1000 gross check.  What can be done to correct the first employee?

1 Comment
Highlighted
Level 15

bonus payroll

Typically, a person with an Additional Fed Income deduction for their W4, gets a higher Bonus, because you are covering their taxes, as "gross up." Or, the person's Total doesn't hit the tax tables the same; the Gross check is lower, because this person's W4 has 8 allowances, but everyone else is Single + 1, for example. Compare the Fed and State income tax withholding, since this is Variable by W4 submitted to the employer.

 

Then look at YTD; perhaps someone hit the Max for SS? That removes 6.2% from both the employer and the employee. So, their Gross doesn't have to be as high, to get the same Net.

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