supplemental income taxed at 22%

QuickBooks won't calculate supplemental taxation at 22%, though you can do it manually and enter the tax amount on the paycheck.

Create an unscheduled payroll to do this.

I appreciate the fast reply, but dismayed that this cannot be set up in QB.  How would I enter the tax amount on the paycheck?

Hi there, AlabamaPamela.

You'll have to create an unscheduled paycheck so that you can enter the tax amount manually. I'll show you how:

1. From the Employees tab, select Pay Employees.
2. Select Unscheduled Payroll.
3. Checkmark the name of the employee and click Continue.
4. Click on Open Paycheck Detail.
5. Enter the tax amount in the Preview Paycheck window.
6. Click Save and Close.

To check your employees totals, you can run the Payroll Summary report.

Please reach back out to me here with any additional information, so I can get you taken care of.

Thank you

Will the 22% tax be saved in payroll so I do not have to reset each paycheck when I run a regular payroll?

Thanks for getting back in touch with the Community, AlabamaPamela.
 

I'm happy to hear GlinetteC's steps were able to help you find your answer.
 

Since it's manually entered, the tax information on an unscheduled paycheck will be saved in your payroll. You won't have to reset any checks after paying your employees.
 

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

Please don't hesitate to send a reply if there's any questions. Have a great day!

We are using QB Online and I don't see a "Pay Employees" on the page for "Employees".  I, too, would like to set up a straight 22% tax to be withheld on all bonuses.  Is there a step other than the one mentioned above that I can take?  

thank you, in advance!

Jennifer

Hello, Jennifer.

Yes, and I'd be more than happy to show you the steps on setting up a bonus with a 22% withholding tax rate in QuickBooks Online. 

In QuickBooks Online, we would want to use the Run payroll button to create the paychecks. Before we do it, let's make sure that we already have the Bonus pay item on the employee's profile. This way, we'll be able to pay them with the bonuses with the 22% tax withheld. 

To add the pay item: 

1. Go to Payroll, then click the Employees tab.
2. Find and open your employee's profile.
3. Scroll down to Pay types, then click Edit.
4. Expand the Common pay types section, then check Bonus.
5. Hit Save.

Creating the paycheck: 

1. Go to Payroll, then click Employees tab again
2. Click Run payroll.
3. Select your employee's pay schedule. 
4. Check your employee, then enter the amount in the Bonus field.
5. Click Preview payroll, then hit Submit payroll when you're ready. 

I'll also point out that you have the option to check and edit the tax amounts on the Preview payroll screen. Just click the pencil icon on the amount to see the tax details. Ensure that the 22% tax withholding rate is applied for the bonuses. Edit it if needed. 

If you need more details or documentation about this process, I'll share this article with you: Pay an employee bonus. 

Would you like to review your payroll amounts and liabilities for the upcoming tax time? Check out this article for a guide on running payroll reports: Run payroll reports in QuickBooks Online Payroll. 

I'll also add this year-end guide if you need help managing your taxes and books: Year-end guide for QuickBooks Online. 

Drop by again or create a new thread if you have more questions about managing your payroll in QuickBooks. Need help with your entries? Or need to run reports? Let me know the details and I'll gladly help you out. 

In QB Desktop I do not see a way to  remove the SS, Medicare and Federal taxes and create a flat rate 22% for a supplemental check.  Can you help?

How do I enter this rate manually in Intuit QB Desktop

I hope you're doing well, Stacey121.

I'm glad to help you remove the employee's Federal withholdings and create a flat rate for the supplemental rate in QuickBooks Desktop. You can follow the steps I've outlined below.

1. Go to Employees, then Employee Center.
2. Double-click the name of the employee.
3. Select Payroll Info from the left menu, then Taxes.
   
4. Go to the Federal tab, then uncheck the Medicare, Social Security, and Federal Unemployment Tax boxes.
5. Click OK to save the changes.
   
6. QuickBooks will then hide them when you create a paycheck.

Before proceeding, please know that employers are liable for the withholding and remittance of the correct amount of tax required to be deducted and withheld. I'd suggest consulting a tax advisor or a government agency where your company is registered. This is to prevent penalties or issues in the future.

To proceed, you can create a flat rate when creating unscheduled payroll by overriding any tax item from the Employee Summary or Company Summary tables. I've added a screenshot below as a visual reference.

In addition to this, always use the Payroll Tax Liability report to see the payroll tax amounts that you've withheld every after running payroll.

If you have more questions about creating a supplemental tax rate, you're more than welcome to ask here. The Community Team and I will be around to help. Take care always and have a wonderful weekend ahead!

I agree.  I have requested this several times.