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userlzb65
Level 1

I need to add $100 of taxable income to a payroll check without actually paying the employee?

 
Solved
Best answer December 15, 2020

Best Answers
Rea_M
Moderator

I need to add $100 of taxable income to a payroll check without actually paying the employee?

You can add $100 of taxable income without actually paying the employee by creating a zero net paycheck in QuickBooks Online (QBO) Payroll, @userlzb65.

 

There are three reasons you'll want to create a zero net paycheck in QBO Payroll.

  • Put an entire paycheck into a retirement plan.
  • Designate an entire paycheck for income tax.   
  • Record a gift made to an employee. Such as cash or a gift card.

 

When you add the entire $100 paycheck for taxable income, you'll have to first need to add an Other Earning pay type to the employee's profile, then use the net to gross formula to determine the gross pay amount. Before that, I'd recommend checking out this article for the descriptions of the supported pay types and deductions in QBO Payroll and how they impact federal taxes and forms: Supported pay types and deductions explained.

 

Once everything is all set, you can follow these steps:

  1. Go to the Payroll menu, then select the Employees tab.  
  2. Click the Run payroll button.
  3. Choose the employee and pay schedule.
  4. In the Other earning box, enter the amount determined by using the net to gross formula.
  5. Select the Preview payroll button.
  6. Click the Edit (Pencil) icon beside the Net pay amount.
  7. Zero out all unwanted deductions
  8. Edit the Federal Income tax or State Income tax amount, then click OK.
  9. Select Preview Payroll, then select Submit payroll.

 

After that, I'd recommend pulling up the Payroll Summary by Employee report. This will give you comprehensive details about your employee's wages, deductions, and tax info. Just go to the Payroll section from the Reports menu's Standard tab.

 

Additionally, you also need to confirm that each employee's compensation, benefits, and withholdings are correct at year-end. This is to make sure you'll be submitting the right amount of payroll taxes to the agency. 

 

Leave a comment below if you have follow-up concerns regarding employees' payroll checks or other inquiries. I'll be around to help. Take care always. 

View solution in original post

11 Comments 11
Rea_M
Moderator

I need to add $100 of taxable income to a payroll check without actually paying the employee?

You can add $100 of taxable income without actually paying the employee by creating a zero net paycheck in QuickBooks Online (QBO) Payroll, @userlzb65.

 

There are three reasons you'll want to create a zero net paycheck in QBO Payroll.

  • Put an entire paycheck into a retirement plan.
  • Designate an entire paycheck for income tax.   
  • Record a gift made to an employee. Such as cash or a gift card.

 

When you add the entire $100 paycheck for taxable income, you'll have to first need to add an Other Earning pay type to the employee's profile, then use the net to gross formula to determine the gross pay amount. Before that, I'd recommend checking out this article for the descriptions of the supported pay types and deductions in QBO Payroll and how they impact federal taxes and forms: Supported pay types and deductions explained.

 

Once everything is all set, you can follow these steps:

  1. Go to the Payroll menu, then select the Employees tab.  
  2. Click the Run payroll button.
  3. Choose the employee and pay schedule.
  4. In the Other earning box, enter the amount determined by using the net to gross formula.
  5. Select the Preview payroll button.
  6. Click the Edit (Pencil) icon beside the Net pay amount.
  7. Zero out all unwanted deductions
  8. Edit the Federal Income tax or State Income tax amount, then click OK.
  9. Select Preview Payroll, then select Submit payroll.

 

After that, I'd recommend pulling up the Payroll Summary by Employee report. This will give you comprehensive details about your employee's wages, deductions, and tax info. Just go to the Payroll section from the Reports menu's Standard tab.

 

Additionally, you also need to confirm that each employee's compensation, benefits, and withholdings are correct at year-end. This is to make sure you'll be submitting the right amount of payroll taxes to the agency. 

 

Leave a comment below if you have follow-up concerns regarding employees' payroll checks or other inquiries. I'll be around to help. Take care always. 

userlzb65
Level 1

I need to add $100 of taxable income to a payroll check without actually paying the employee?

Thank you!

Tori B
QuickBooks Team

I need to add $100 of taxable income to a payroll check without actually paying the employee?

Hey there, @userlzb65

 

You're most welcome. Please know that you can reach out to the Community any time you need a helping hand. We're always around any time you need guidance. 

 

Take care and have a fantastic day ahead! 

susank
Level 2

I need to add $100 of taxable income to a payroll check without actually paying the employee?

We paid an employee a $100 cash bonus.  How do I record the CASH transaction in Quickbooks?

 

susank
Level 2

I need to add $100 of taxable income to a payroll check without actually paying the employee?

We paid an employee a $100 cash bonus.  How do I record the CASH transaction in Quickbooks for PAYROLL purposes.  

GebelAlainaM
QuickBooks Team

I need to add $100 of taxable income to a payroll check without actually paying the employee?

We got you here in the Community space, @susank.

In QuickBooks, we have three steps to follow on how to record bonus pay to your employees. But, it depends on how you want to pay out the bonus. Either you pay bonus along with the regular pay or through a separate bonus check.

Let me guide you with process.

Step 1: Determine how you want to pay out the bonus
Step 2: Add the Bonus pay type

Here's how:
 

  1. Go to the Payroll menu, then select Employees.
  2. Enter the employee's name.
  3. From the Pay types section, click Edit.
  4. On the Common pay types section, choose Bonus .
  5. Then, select Save.
     

You may skip this step if you give the bonus through a separate check.

Step 3: Pay out the bonus
 

If you pay bonus along with the employee's salary:
 

  1. Go to the Payroll menu, then Employees.
  2. Click Run payroll.
  3. Choose the employee. type in the amount in the Bonus field.
  4. Select Preview payroll, then Submit payroll.
     

If you pay a bonus-only paycheck:
 

  1. Go to the Payroll menu, then Employees.
  2. From the Run payroll dropdown, choose Bonus only.
  3. Select how you’d like to enter the bonus either As a net or As a gross.
  4. Locate the employee, then enter the Bonus amount.
  5. Click Edit next to "Payroll options".
  6. Choose the payroll options you want then, Apply.
  7. If you’ve selected As net pay, the pay stub includes Employee Taxes Paid by Employer in the pay section.
     

You can refer to this article if you have clarifications: Pay an employee bonus

Additionally, if you want to get a closer look at your business's finances, you can run payroll reports of you choice. In this article it includes lists of several payroll reports you can use to view useful information about your business and employees.

I'll be around if you need more help in recording your employees pay. Have a good one!

susank
Level 2

I need to add $100 of taxable income to a payroll check without actually paying the employee?

What about a $100 cash payout?

What I've learned-

in quickbooks

1) record the $100 bonus

2) record the $100 "cash giveout"

This creates a "negative" paycheck because of SS, medicare and other taxes, thus, it can only be done as part of a regular payroll process to include other earnings.

Chanel30
Level 1

I need to add $100 of taxable income to a payroll check without actually paying the employee?

Hi could this be used in the case that my boss uses the company vehicle for personal use so he gives me the mileage for the year and I send it to my accountant who gives me a figure to Add to his income and then what the Social Security and Medicare tax would be on the income? 

Bryan_M
QuickBooks Team

I need to add $100 of taxable income to a payroll check without actually paying the employee?

Hi there, @Chanel30.

 

We'd like to know where the steps or compliance would apply. Or additional info on your goal so we can further discuss it here and achieve it.

 

Click the Reply button below. I'll reply as soon as possible. Have a good day.

Chanel30
Level 1

I need to add $100 of taxable income to a payroll check without actually paying the employee?

Basically I what I'm trying to ask is how would a person go about adding this income ( not actually paid in monetary for) to his total income so that it will show the correct amount on the 941s and W-2s. I don't know if that helps to clarify my question! 

MJoy_D
Moderator

I need to add $100 of taxable income to a payroll check without actually paying the employee?

Thank you for providing us with more information about your concern, @Chanel30. I can share additional information about creating a payroll check. 

 

You can create a zero net paycheck in QuickBooks Online if you want to withhold an entire paycheck and put it toward income tax. However, I suggest verifying with your accountant the best option that suits your situation.

Here's how:

 

  1. Add an Other Earnings pay type to the employee's profile and use the gross up formula to determine the gross pay amount.
  2. Go to the Payroll menu and then Employees
  3. Click on Run payroll.
  4. Choose an employee and pay schedule.
  5. Zero out the employee's regular pay or salary:
    • Enter 0 for regular pay hours.
    • Select the salary amount. Select Skip salary this time only then Apply.
  6. Select the Other earning box and enter the amount determined by using the gross up formula. Make sure that the other pay types are 0.
  7. Select Actions ⋮ then Edit paycheck.
  8. Zero out all unwanted deductions.
  9. Add an amount for Federal Income tax or State Income tax.
  10. Adjust the Other earning amount as needed to get the 0.00 net pay amount.
  11. Once the net pay is zero, select Save.
  12. Click on Preview payroll, then Submit payroll.
  13. Select Close.

 

Check out this article for more information when to create a paycheck that has a net pay amount of zero: Create a zero net paycheck

 

Here's additional information about adding deductions your employee needs to pay each payday: Set up, change, or delete employee-paid payroll deductions

 

Let me know if you need further help or if you mean something else. I'm always here to answer them for you. Have a great rest of the day!

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