One Time Bonus Payment - Enhanced Payroll Desktop

Thanks for reaching out to us today, @esdammann.

I have some information about how you can create a separate bonus check. QuickBooks Payroll allows you to create a bonus on a separate paycheck. Then, use your check date as your pay period date. Let me walk you through how.

1. Go to Employees on the top menu bar. Choose Pay Employees.
2. Select Unscheduled Payroll from the list.
3. Check mark the name of employee(s) you want to create a bonus check, then hit the Open Paycheck Detail button.
4. In the Earnings box of the Preview Paycheck window, select in the Item Name column to get a drop-down menu, pick the bonus item. If you don't have a bonus payroll item created, see How do I set up a payroll item for a bonus?
5. In the Rate column, enter the gross amount of the bonus.
6. Adjust federal and/or state withholding taxes as needed.
7. Click Save and Close or Save and Next to continue creating additional bonus paychecks.

For more information about creating bonus paychecks, check out these guides:

• Create Bonus Paychecks In QuickBooks Desktop Payroll.

• Pay A Bonus On Separate Paychecks In QuickBooks Desktop Payroll.

Additionally, here's a link that covers all tasks you can do when using the payroll feature.

Feel welcome to message me anytime if you have any questions or concerns about payroll. I'm more than willing to answer them for you. Take care and enjoy the rest of the week.

Thank you for your reply @ShiellaGraceA .  Can you confirm the following (using an example)

1.  I can use a pay period such as today's date of 12/5/20 - 12/5/20 for the one time bonus payment in Quickbooks and

2.  that will NOT cause any issues when I do the next regularly scheduled payroll next week and enter a pay period range that includes the pay period used for the one time bonus pay period (11/29/20 - 12/12/20)?  

Thank you @ShiellaGraceA .  Can you confirm the following using today an example.  I do plan on using the unscheduled payroll option.

1.  I can use a pay period of 12/5/20-12/5/20 to process the one time bonus check (to be paid on 12/10/20) and

2.  This will NOT cause any issues for future regular payrolls....meaning when I run the next regular biweekly payroll the following week, Quickbooks will allow me to use the pay period (11/28/20 - 12/12/20) that includes the one time bonus pay period (12/5/20 - 12/5/20).

Are there any other steps that I need to worry about doing in Quickbooks in regards to the pay periods if I use the dates in the above example?

Thanks for getting back to us, @esdammann.

Yes, you can create an unscheduled payroll check to process your one-time bonus check in QuickBooks Desktop (QBDT). Doing this will create a separate calculation of your bonus taxes. 

There are also things you need to consider when calculating the taxability of your bonuses. Please take note that the net pay and tax calculation can change depending on how you pay the bonus, whether to add it on the regular payroll or give it separately.

Here are the things you need to know once you create the bonus on a separate paycheck:

• The bonus will be on a separate paycheck without the regular wages included.
• Additional fees may apply if you have a Direct Deposit or Assisted Payroll service.
• You can use the Enter net/Calculate gross feature of the paycheck to gross-up the paycheck. See Gross up a paycheck for more information on grossing up.
• Regular deductions (retirement, health insurance, child support) may apply to the bonus amount. Consult your tax/financial advisor or the plan advisor for information about these deferrals on bonus paychecks.

In addition, here are the things you should remember in case you include the bonus on a regular paycheck: How QuickBooks Desktop calculates bonus taxes in a regular payroll schedule. 

You're more than welcome to visit this thread again if you have other questions. Just add the details of your concern here and I'll help you out.

Thank you @ReymondO . 

Can anyone specifically confirm my questions below that are related to what pay period I should be using for these bonus payments.

I do plan on using the unscheduled payroll option.

1.  I can use a pay period of 12/6/20-12/6/20 to process the one time bonus check (to be paid on 12/10/20) and

2.  This will NOT cause any issues for future regular payrolls....meaning when I run the next regular biweekly payroll the following week, Quickbooks will allow me to use the pay period (11/28/20 - 12/12/20) that includes the one time bonus pay period (12/6/20 - 12/6/20).

Yes and yes.

Running an unscheduled payroll has no effect on your regular payroll schedule. Works same way when you wish to issue a separate termination paycheck.

What you do need to be aware of is the flat rate payroll withholding on large bonus pay that may be higher or lower than what the system woukd automatically calculate. The IRS requires you to deduct a flat 22% for FWT from the bonus.

Thank you so much @john-pero .   Already realize the 22% Fed WHT, plus and state and local WHT that is needed on supplemental wages, as well as Social Security and Medicare (Employee and Employer).  So I think (hope) I am all set.