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Cash Bonus

I have already paid my employees a cash bonus.  I need the amount I paid them to be reflected on their W2 in Box 1.  For example....lets say the bonus was $100.  Is there a way I can have that $100 appear in Box 1 on the W2 so that my employee is responsible for all taxes?  In my research it looks like there is a way on the Desktop Version but I can't seem to find a way with the Online Version.  

I see the Bonus Check feature but that is not what I am trying to do. I simply want to make sure the $100 is included in their wages. 

Thank you!

2 Comments
Moderator

Re: Cash Bonus

Good day, stacibell927.

I'd be happy to share with you some information about showing the cash bonus on your employee's W2 in QuickBooks Online.

 

If you paid your employees with a regular paycheck including the cash bonus, the amount will

 

In QuickBooks Online, employees cash bonus will not be reflected on their W2. However, if you paid them with a regular paycheck including the cash bonus as an item, then it should be reflected on your employee's W2 form in Box 1.

 

You may find this article helpful: Pay employees a bonus paycheck in Online Payroll.

 

For additional help, feel free to reach out to our Customer Care Team. You can get our most-up-to-date contact details here: https://quickbooks.intuit.com/community/Getting-Started/Get-help-with-QuickBooks-Online/m-p/185932.

 

Keep me posted if you need anything else, I'll be around to help. Happy Holidays!

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Re: Cash Bonus

Yes, this will happen, because you Make it happen: "In QuickBooks Online, employees cash bonus will not be reflected on their W2."

 

Yes, Cash Bonus will show in the W2, because you need to Add it to a Paycheck, let taxes compute, then deduct the amount you handed out as cash.

 

That means you need a Bonus Item, as usual, and it has to be added to a Paycheck for the amount you handed them, and that paycheck has t have other Gross Pay on it so there are funds from which Taxes can compute and be deducted. Then, you need to use a Net Pay Deduction, the same as an Employee Loan repayment and for the same amount you already gave them.

 

Treat the handout of the cash as "Employee Loan Advance." It is Not the payroll event and not payroll expense.

 

Treat the Net Pay Deduction as Repaying the Employee Loan Advance.

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