payroll and tax rate one time payment

Thanks for posting here, @BrianShupe,

I can guide you through the steps of setting up grant in QuickBooks Desktop. The process may take a few steps but I prepared all the things you need to do. Here's how:

1. From the Lists menu and choose Payroll Item List.
2. Right-click anywhere from the list then select New.
3. For the Select setup method, choose Custom Setup then press Next.
4. Choose Addition then Next.
5. Add the name of the payroll item then press Next again.
6. Pick a Tax Tracking Type that corresponds to how the grant is reported on the tax forms.
7. Click Next thrice then add the default rate.
8. Once done, click on Finish.

To add this in the employees pay, create an unscheduled payroll then use only the new item. Here's how:

1. Tap the Employees menu then choose Pay Employees.
2. From the drop-down, choose Unscheduled Payroll.
3. Enter the pay period and the check date.
4. Mark the employees to pay then choose Continue.
5. Above the employee name, click on Open Paycheck Detail.
6. Remove the other items and add the new payroll item in the Other Payroll Items section. See this:
   
7. Review the taxes before saving the transaction.
8. Do the same process for the other employees who received the funds.

Let me know if you have other question or concerns about the steps. I'll be right here to make sure your items are set up properly. Have a good one!

what rate would be the default rate for a one time bonus check?

What is the default rate for a one time bonus check

Thanks for joining in this thread, @R-emc. I hope you're having a wonderful day.

Having an accurate default rate for your employee bonus check is my priority here. Happy to guide you where you can ask or get the exact rate. This way, you can create a check without a moment's delay. 

The default rate for a one-time bonus check will depend on your business. To find out your fixed percentage, I recommend that you contact a tax advisor or a government agency where your company is registered. To get an advisor near you, you can go to this link: Find a tax professional. From there, enter your ZIP code in the box and filter the necessary details to find an accurate one.  

Once you have it, you can create a bonus check whenever you're ready. You can follow the steps provided by Jen_D above. For additional information, see this link: Create Bonus Paychecks In QuickBooks Desktop Payroll. 

In addition, check out these articles below about how to edit the items and know the bonus taxation options in QuickBooks as well:

• Edit a payroll item
• (Circular E), Employer's Tax Guide

If you have more questions about bonus checks, you're more than welcome to ask here. The Community Team and I will be around to help. Take care always, R-emc.

Per the IRS, one-time bonus checks are subject to 22% federal withholding if you have been withholding federal income tax in the current or preceding year.  If you pay a bonus concurrent with regular wages, it withholds income tax as if it were a single payment for a regular payroll period.  Don't forget state withholding.  The state I live in has a flat 6.25% withholding rate for a single payment bonus.

How do I set the default bonus rate at 22%? When I try to edit the Bonus pay type, it does not give me the option to add a default rate. 

Hello there, @HBrooklyn. Thank you for raising your query here in this thread.

I recognize how convenient it is to have the option to set a default bonus rate. However, it is unavailable in QuickBooks Desktop (QBDT). You can only add the bonus rate when creating paychecks manually.

Let me guide you through the steps on how to add a bonus rate when creating a paycheck:
 

Step 1: Add the Bonus pay type
 

1. In your QBDT file, go to Lists, then select Payroll Item List.
2. Select Payroll Item then New.
3. Click Custom Setup, then Next.
4. Select Wage, then Next.
5. Click Bonus, then Next.
6. Enter the name of this item, then select Next.
7. Select the expense account you want the item to track to, then select Finish.

Step 2: Pay out the bonus

1. In your QBDT, create your payroll as normal.
2. Open the Preview Paycheck window.
3. In Earnings, enter the Bonus item you created in Step 2.
   
   
    
4. In the Rate column, enter the gross amount of the bonus.
5. Adjust federal and/or state withholding taxes as needed.
6. Select Save and Close or Save and Next to continue creating paychecks.

For detailed steps, kindly visit: Pay an employee bonus.

Moreover, I can see how your idea can help you and other users to have the option to add a default bonus rate in QuickBooks. I recommend letting our Developers be notified of your idea by leaving feedback. They might consider adding this feature for future product enhancements.

To send your input, here's how:
 

1. Go to the Help menu and select Send Feedback Online.
2. Click Product Suggestion.
3. Choose a feedback type and product area on the QuickBooks Feedback window.
4. Enter your suggestion or feedback, name, and email address (optional).
5. Select Send Feedback Online.

Additionally, I'll also share this article that can serve as your reference if you want to set up an overtime pay item in QuickBooks: Add overtime pay to an employee.

Feel free to leave a reply if you have additional QuickBooks-related queries. The Community team always has your back. Have a good one.