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For employers there are quite a few ways in which they can give bonuses to their employees, it can be given as a separate pay cheques or with the regular pay cheques. However, it is important that as an employer you ensure that the bonus is correctly mentioned in the ledger. A mistake on your part to put the bonus amount and the ledger will result in developing an issue of incorrect financial account of your company. To avoid such an event you can use QuickBooks to create your employees bonus cheque, as it will keep the record and can be used for bookkeeping. The record also enables company to deal with any issues in which an employee might complain of not receiving a bonus.
QuickBooks however while adding the bonus amount to your employees pay cheque and the company’s financial records do not calculate the tax deductions. You have to guide it manually to calculate the amount.
This AccountingHub article is a guide for using QuickBooks in creating employees bonus pay cheques. The following steps are required for the above-mentioned purpose.
After opening the QuickBooks program click on the ‘Employees’ tab on the left side and QuickBooks will give an option of creating a regular pay cheque with bonus or just the bonus pay cheque. If you wish to add bonus with the regular pay cheque, then:
Step to Create a Bonus Paychecks in QuickBooks
- Select the employee name and click on the
- It will take you to the employee’s page with payment details. Click on ‘Additional pay type: Overtime pay, Sick Pay, Vacation Pay’ It will take you to another page. There check the box next to Bonus and click on A window will open with the message ‘We need more info about [employee name]. Click on ‘Finish it later’. You will see ‘Bonus’ gets added to the ‘Additional Pay’ category on the employee’s page.
- Go back to ‘Employees’ tab and click on it. Then Click on ‘Run payroll’. It will take you to the list of employee’s name.
- There click on the ‘Bonus’ A box beside the employee name will open; write the bonus amount in the box. Click on ‘Preview Payroll’. Then click on ‘Submit Payroll’, next click ‘Finish Payrol’. A message ‘Tax payments due’ will appear, you can either do the ‘Review and Pay’ or click on ‘I’ll Do it later’ tab.
Procedure to do a Separate Bonus Pay Cheque
- Click on ‘Employees’ after opening the QuickBooks program.
- Click on the tab ‘Bonus Only’ from the drop-down menu under ‘Run Payroll’.
- A new window with the message ‘How would you like to enter your bonus amounts?’ will appear with the options ‘As net pay’ and ‘As gross pay’. Select an option ‘net pay’– adds the bonus after deducting the taxes and ‘gross pay’ – the amount shown is before any deductions.
- After selecting the option between net pay and gross pay press ‘Continue’.
- Against the employee name add the bonus amount under the ‘Bonus’ tab and also the date on which you want to make the payment.
- Click on Preview payroll and then submit the payroll and finish the
Guidance from QuickBooks Technical Support Team-
After going through the steps mentioned above for the creation and maintaining records for Bonus Paychecks in QuickBooks you are still not able to create one and encountering any type of error. Then, it’s time to seek help from the QuickBooks Technical Support Experts and get all your issues resolved. No matter you encounter the error in night or in day time they are all around the clock present for you.