How Do I Edit My Next Payroll To Pay $5,000.00 BUT Factor In Net $5k (After Taxes)?

Nickerz · ‎April 14, 2022

Without running payroll yet, it runs on 4/20 btw, I need help editing my current salary so I can increase it to an amount that nets me $5k after taxes.

I think I remember a way to do this (or maybe it was a bonus, can't remember) so that you can enter the amount you want NET and QB shows you how much the GROSS has to be

My next payroll is coming up on 4/20/22 so is there a way to figure out what the salary needs to be to net $5000.00 even...or close to that (can't be less than $5k though)?

Sorry for the strange request but hope someone can help.

Nickerz · ‎April 14, 2022

I think I figured this out...

BUT...is there a way to setup this bonus so it takes the place of the original salary that is scheduled to run 4/20? Otherwise, won't this employee receive their normal salary, plus this bonus?

If so, can I simply turn off the salary (make it NOT Active for 4/20) or will this turn off the bonus that needs to run on 4/20?

AND...will the bonus be a direct deposit into the employees bank?

So far, I didn't have to change my salary at all. Below are the steps I did to PREVIEW this bonus...

QB>Payroll>Employees>Bonus Only (selected from the "Run payroll" menu - green button on the right)>As net pay>Continue...

...then I entered the Pay date (at the top), NET BONUS, entered a MEMO and clicked on "Preview payroll" green button in the bottom right corner), then all looked good and I clicked on Submit payroll (green button in the bottom right corner) and VIOLA!!!

...so again, I won't submit this until someone can confirm my questions above. Thanks!

View solution in original post

Nickerz · ‎April 14, 2022

I think I figured this out...

BUT...is there a way to setup this bonus so it takes the place of the original salary that is scheduled to run 4/20? Otherwise, won't this employee receive their normal salary, plus this bonus?

If so, can I simply turn off the salary (make it NOT Active for 4/20) or will this turn off the bonus that needs to run on 4/20?

AND...will the bonus be a direct deposit into the employees bank?

So far, I didn't have to change my salary at all. Below are the steps I did to PREVIEW this bonus...

QB>Payroll>Employees>Bonus Only (selected from the "Run payroll" menu - green button on the right)>As net pay>Continue...

...then I entered the Pay date (at the top), NET BONUS, entered a MEMO and clicked on "Preview payroll" green button in the bottom right corner), then all looked good and I clicked on Submit payroll (green button in the bottom right corner) and VIOLA!!!

...so again, I won't submit this until someone can confirm my questions above. Thanks!

Nickerz · ‎April 14, 2022

Ok, I think I got it now, lol!

So all I did was add the bonus to the existing salary, took the amount QB figured out AFTER taxes, then subtracted by the original salary, then entered this difference into the Bonus field and NOW viola!!! It shows NET $5k for this upcoming 4/20 payroll!

To do this I did the following...

QB>Payroll>Overview>Update upcoming payroll (blue link).

...but I have to follow the steps in my last post to have QB figure out the BONUS net pay, then subtract the net amount QB calculates from the existing salary, then enter the difference in the bonus field using the steps in this post. Just in case I need to do this down the road and for anyone else that stumbles across this. =)

FritzF · ‎April 14, 2022

Great job, @Nickerz.

You did great sorting this out! I appreciate you sharing the steps you've done here in the Community. This will definitely help other users who will encounter the same concern in the future.

In case you need it, I'll also add these articles that tackle running payroll and creating a bonus for an employee for more information:

For more tips and other resources, you can also visit our website for future reference: Self-help articles.

If you have additional questions about payroll or anything else, please let me know in the comment. I'll be more than willing to help. Take care always.

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How Do I Edit My Next Payroll To Pay $5,000.00 BUT Factor In Net $5k (After Taxes)?