Hello @Cynthia, I would like to share some insights regarding your question about bonus payroll.
When creating a bonus paycheck for your employees, there will be no additional cost or fee. You have the option to either pay the bonus along with the regular pay or through a separate paycheck. However, if you choose to pay the bonus separately, you can apply the federal supplemental tax rate of 22%, or 37% for bonuses of $1,000,000 or more.
If you use QuickBooks Online Payroll, your employees will not receive an email notification about their bonus from QuickBooks Workforce. It's important to note that when creating a separate bonus paycheck, your employees can only have the bonus go to one direct deposit account. If you have an employee who receives direct deposit to two accounts, the bonus-only paychecks will be deposited 100% into the secondary account.
The additional cost for running a bonus payroll separate from regular payroll in QuickBooks Online Premium Payroll may arise from the different tax treatments and the need to create separate paychecks. Therefore, it's important to consider the tax implications and specific features available in the QuickBooks product you are using.
For more information about paying an employee bonus separate from their salary, you can check out this article: Pay an employee bonus
Additionally, QuickBooks provides a variety of payroll reports to help you get a closer look at your business finances and employees. You can access, customize, and print these reports by following the steps outlined in this article: Run payroll reports.
If you have any further inquiries about payroll bonus in QBO, feel free to reach out to us anytime. I'll be happy to help. Have a great day.
