Reporting non cash prizes

Thanks for bringing this to my attention, @laurah4. Let me guide you on how to report the noncash prizes to your employee's W2.

In QuickBooks, you can add bonuses and other perks and benefits to your employees. Since this is a noncash prize, you can add other earnings to record this in their form. 

First, you'll have to add it to your employee's profile. You can follow the steps below as your reference:

1. Go to Payroll, then select Employees.
2. Select the employee you want to add to the other earnings.
3. In the Pay Types section, click Edit.
4. Go to the Additional pay types, then select Other Earnings.
5. You can change the name and enter the amount of the prizes.
6. Click Save.

Once done, you can run an unscheduled payroll or run this together in your next paycheck. Here's how:

1. Go to Payroll, then select Employees.
2. Select Run payroll.
3. Choose the Pay period (if applied) and the Pay date.
4. Select the employees you want to pay the earnings.
5. Select the Actions ⋮, then click Edit paycheck to enter your pay details.
6. Select Preview Payroll, then click Submit Payroll.

Additionally, you can record a bonus to your employee and add this along with the regular pay or through a separate paycheck in QuickBooks. 

Also, in case you want to change something in your employee's information, you can access this article for more detailed steps: Edit or change employee info in payroll.

Please know that I'll be a click away if you need further assistance managing an employee's W2 or have other concerns in QuickBooks. Have a wonderful day ahead!

I tried this. But this process adds the bonus amount to gross pay before calculating net, so it looks like the employee is getting the bonus twice, once in the bonus handed out and second with this method. How do I prevent this?

Thanks for joining the Community and getting involved with this thread, treasurerold. I appreciate your detailed information.

When paying separate bonus checks to employees, you have an option to pay them as a gross or net pay. If you pay bonuses along with an employee's regular pay, they'll be taxed the same way as your worker's salary.

In the event you're unsure how you should be setting these non-cash bonuses up, I'd recommend working with an accounting professional.

If you're in need of one, there's an awesome tool on our website called Find a ProAdvisor. All ProAdvisors listed there are QuickBooks-certified and able to provide helpful insights for driving your business's success.

Here's how it works:

1. Go to our Find a ProAdvisor page.
2. Use the City or ZIP search field to specify a location.
3. Select Find a ProAdvisor.
4. Browse through your results and find one that works best for the business. You can click on each ProAdvisor's profile to learn more information about them.
   
   

Once you've found an accountant, they can be contacted through their Send a message form:
 

1. Use the available text box to introduce yourself. Be sure to include details about which services you're looking for.
2. Enter your appropriate info in the Your name, Your email, and Your phone number (optional) fields.
3. Hit Send message.

You'll also be able to find many detailed resources about using QuickBooks in our help article archives.

If there's any additional questions, I'm just a post away. Have an awesome day!