Pay employee bonuses

If you choose to pay a bonus along with the employee’s regular pay, add the Bonus pay type before you run payroll. If you choose to give the bonus through a separate check, skip to Step 3: Payout the bonus.

1. Go to All apps , then Payroll, then Employees (Take me there).
2. Select your employee.
3. Select Job & pay.
4. From Additional pay types, select Add or Edit.
5. From the Pay types ▼ dropdown, select Bonus.
6. Enter a recurring amount if applicable - this amount will be added to every paycheck.
7. Select an effective date if the Bonus item should appear on a paycheck after a certain date.
8. Select an Unassign date if the Bonus item should only be used up to a certain date.
9. Select Save.

Step 1: Set up the bonus item

1. Go to Lists, then select Payroll Item List.
2. Select Payroll Item then New.
3. Select Custom Setup, then Next.
4. Select Wage, then Next.
5. Select 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: Add the item to your employees

1. Go to Employees, then Employee Center.
2. Select your employee. 
3. Select Payroll Info, then add the bonus item in the Earnings section.
   1. If the Bonus item was setup as an Addition instead of a Wage, then it will need to be added in the Additions, Deductions, and Company Contributions section of the Employee’s profile.
4. Select OK.

1. Go to All apps , then Payroll, then Employees (Take me there).
2. From the Run payroll ▼ dropdown, select Bonus only.
3. Choose how you’d like to enter the bonus:
   1. As a net: The employee gets the exact bonus amount. Taxes are still calculated but you'll pay the taxes.
   2. As a gross: We’ll figure out the net amount for you.
4. Select the employee, then enter the Bonus amount.
5. Below the list of employees, select Edit ✎ next to Payroll options.
6. Select the payroll options you want. Then select Apply.
7. Select preview and submit payroll.
8. If you’ve selected As net pay, the pay stub includes Employee Taxes Paid by Employer in the pay section.

These steps are for gross pay bonus amount.  If you want to enter a net pay bonus, you’ll need to gross up your paycheck.

1. Go to Employees, Pay Employees, then Unscheduled Payroll.
2. Set the Pay Period End and Check Date.
3. Place a check mark next to the employee(s) to pay, then choose Open Paycheck Detail.
4. Make sure the Bonus appears in the Earnings section and remove all other payroll items that do not need to be included on the Bonus paycheck.
   1. If the Bonus item was setup as an Addition instead of a Wage, then it will need to be added in the Additions, Deductions, and Company Contributions section of the paycheck.
5. Select Save & Next if there are more employees receiving a bonus and follow the above steps again.
6. Select Continue on the Enter Payroll Information screen.
7. Review the checks showing on the Review and Create Paychecks window, then select Create Paychecks.

Note: Desktop Payroll defaults to the regular tax rates. To use the supplemental income tax rates, calculate the percentage and then edit the income tax amounts when running payroll.

1. Go to All apps , then Team, then Employees (Take me there).
2. Select Run payroll.
3. Select your employee, then enter the amount in the Bonus field.
4. Select Preview payroll, then Submit payroll.

1. 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.

Note: 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.