On May 1, my client paid out bonus checks to his employees to say thank you for helping him earn his commissions through 03/31. These checks were run as payroll and recorded to "Payroll"...(I do not use QBO Payroll). However, I would like the bonus checks to show on the 03/31 P&L as "Other Expense" to offset the commissions earned, which are recorded as "Other Income".
What kind of JE could I create to show "Bonus paid out" which is an "Other Expense" in my bookkeeping, AND keep the actual payroll checks coded to "Payroll" with the actual date? At year-end I want the Payroll account to match the W-2's and W-3.
I can get the 1st half of the JE: March 31 - Debit "Bonus Paid Out", and Credit Accounts Payable/ Employees
But how do I clear this JE on May 1st and not affect the "Payroll Account"?
This is probably super simple, and I just can't see the forest for the trees!
You know bonus shows on W-2 with payroll, right? I assume payroll taxes were paid by employee/employer?
Commissions are not bonus, and neither of these is "Other Income" or "Other Expense" which are accounts for "non-operating" income and expenses, such as for interest income or expense, like from your local bank. If these amounts were paid via Payroll then they would not be coded to AP since these are employees paid. You would only post to AP, items that have not already been paid, since this would double-pay them again.