Paying a bonus on a separate paycheck
One option when paying bonuses to employees is to pay the bonus on a separate paycheck.
You have the employee and bonus payroll item set up already in QuickBooks.
The employee will receive the bonus pay on a separate paycheck.
By including the bonus on a separate paycheck:
If you do not have a bonus payroll item created, see How do I set up a payroll item for a bonus?
To create a separate bonus paycheck:
Begin creating payroll according to your regular process.
To create a paycheck using unscheduled payroll:
- Click Employees on the top menu bar. Choose Pay Employees.
- Select Unscheduled Payroll from the list.
In the Earnings box of the Preview Paycheck window, click in the Item Name column to get a drop-down menu, select a bonus item.
In the Rate column, enter the gross amount of the bonus.
Click Save and Close or Save and Next to continue creating additional bonus paychecks.
QuickBooks will calculate withholding taxes according to the Filing Status and Allowances in the Employee Profile. You must consider the taxability of bonuses. The net pay on a bonus check can drastically change based upon the selection and disbursal of taxes. For options on changing the tax disbursal on the bonus, see Create a bonus paycheck.