Re: Company paid trip as Employee bonus
Good day, Amy46,
I can help you record your bonus checks in QuickBooks Desktop.
In order to withhold your employee's taxes, we can create a bonus check then offset the net amount afterward. This way nothing gets added to your expenses for payroll wages. Let me guide you on how to do that:
Step 1: Create the bonus item.
- On your QuickBooks company file, go to Lists.
- Select Payroll Item List.
- At the lower left of the Payroll Item List window, select the Payroll Item button.
- Click New.
- Select Custom Setup, and then select Next.
- Select Wage, and then Next.
- Select Bonus, and then Next.
- Enter the name of this item, then select Next.
- Choose the expense account you want the item to track to and select Finish.
Step 2: Add the offset item.
- Go to the List menu.
- Press Ctrl + N on your keyboard.
- Choose Custom Setup and select Deduction.
- Click Next.
- Enter the name of the deduction (Example: Offset Item) and click Next.
- Select None then click Next.
- Click Next and choose Neither.
- Select net pay and click Next.
- Click on the Finish button.
Step 3: Create the bonus check and add the offset item.
- Go to the Employees menu at the top.
- Select Pay Employees.
- Choose Unscheduled Payroll from the list.
- Mark the employees you're creating the bonus checks, then select Open Paycheck Detail.
- Remove all earnings and additional items on the check.
- In the Earnings section, add the bonus item you created.
- In the Rate column, enter the gross amount of the bonus.
- In the Other Payroll Items section, add the offset item.
- In the Rate column, enter a negative amount. The rate should be the Check Amount of the paycheck.
- Once the net amount shows zero (0) click Save and Close or Save and Next to continue creating additional bonus paychecks.
Here's how it should look like:
To know more about creating a separate bonus check, please feel free to checkout this article: Pay A Bonus On Separate Paychecks In QuickBooks Desktop Payroll
Once done, the taxes from the bonus check will then create a liability in QuickBooks. You may want to check this article to know more about processing tax payments: How to use QuickBooks to pay payroll taxes and other liabilities
That should do it, Amy46. If you need further assistance, please feel free to let me know so I can get back to you. Have a good one!