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Bonus payroll

I work for an IT company and the staff are paid a monthly bonus payroll based on production. Their bonus can be affected by how timely they bill. For example, if they bill more than 7 days after completion of the project they incur a penalty on that amount of billing. How can I enter the bonus amount as an addition and then enter the penalty amount so that they can see what they are penalized? Do I enter it as a separate line item?

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QuickBooks Team

Re: Bonus payroll

Good day, daviscassi.


In using Intuit Online Payroll, you can add a Bonus pay type when creating a paycheck. Let me show you how:

  1. Go to the Employees tab and select an employee.
  2. From the Pay section, click on Edit.
  3. In the list of pay types, check the Bonus box.
  4. Hit OK.

Once done, you'll see a Bonus field when running payroll. While to add a penalty amount isn't available, you can set up a new after-tax deduction. This means the amount will be deducted after the taxes are withheld. 

  1. Go to the employee's profile.
  2. From the Deductions & Contributions, click on Edit.
  3. Click on Add a Deduction.
  4. On the Category drop-down, select Other deductions.
  5. Select the Other after tax deductions from the Type drop-down.
  6. Enter a description (like Penalty).
  7. From the Amount per period, select the $Amount.
  8. Enter (zero) on the field beside the $Amount field, then click Save.

Once you run payroll, you can modify the penalty amount. 

  1. Go to the Payday tab and run the payroll as usual.
  2. On the Approve Paychecks screen, click on View/Edit. Then, click the Edit
  3. From the Deductions section, click on Add deduction and select the deduction you've created.
  4. Enter an amount, then Save.

You can now submit the paychecks.


To review all the paychecks you've processed, you can pull up the Paycheck List report. Go to the Reports tab and select the Paycheck List.


You can use this article as your reference: Pay an employee bonus.


Let me know if you have other questions.