QuickBooks is an intelligently designed accounting software. It is integrated with features that meet the needs of different business sectors. The software is an excellent solution for businesses looking for complete accounting support, online. Not only tracking financials becomes easy but you get solutions to queries like: How to pay bonus in QuickBooks. Since everything is handled by machines, thus it helps you save loads of time.
- 1 Pay Bonus Option in QuickBooks Software
- 2 How to set up Bonus Payroll item in QuickBooks?
- 3 How to Create a Separate Bonus Paycheck?
- 4 How to Pay Bonus in QuickBooks?
Pay Bonus Option in QuickBooks Software
The software helps significantly in employee payroll by automating the entire system. The bonus payment is a crucial task that QuickBooks manages without hassle. Within the program, you get the option to pay bonus using a separate paycheck tab. But if you are using Desktop version of QB then bonus option can be seen already configured.
Include Bonus on a Separate Paycheck:
The main problem that people usually come across is that they don’t know how to pay bonus in QuickBooks. Though paying bonuses is a way of appreciating employees and should be practiced more often than not. But the real deal is recording them in the books of accounts. Here are the few things that need to be taken care of before recording a bonus:
- The Bonuses are always recorded on a different paycheck and should not at all be clubbed with the regular one.
- Incase of direct deposits, additional fee may apply.
- Use “Enter net” tab, this will allow you to gross-up your regular paychecks. For more info. please go through gross up paycheck guidelines.
- Regular deductions such as retirement, health insurance, child support may be employed to the bonus amount.
In case of any confusion, it is recommended to check with your tax advisor who will guide you on deferral bonus paychecks.
How to set up Bonus Payroll item in QuickBooks?
In case if you are not looking to create a new item then follow these steps to configure a (payroll) item for a bonus?
- Go to QuickBooks menu and click on the list tab.
- Choose Payroll from the list of options provided.
- Scroll down to find payroll item button. This can be located on the bottom left of your screen.
- Choose to click on the “New” tab.
- Choose Custom Setup and then click Next.
- Select wage options and again click Next.
- Select Bonus, enter the name of the employee’s click Next.
- Locate the expense account you want an item to be tracked.
- Once done, click on the finish button and your configuration for a payroll item for bonuses will be all set.
QuickBooks comprise of an item incase the worker’s incentives are calculated. If the bonus amount is excluded from the calculations above then bonus payroll will be included.
How to Create a Separate Bonus Paycheck?
If you are using QuickBooks as your bookkeeper and looking for how to pay bonus in QuickBooks then follow the steps below:
- Start to create a payroll as per your regular process.
- Choose the employee’s tab to select the names of the employees who will receive bonuses.
- Now choose the option to open up the Paycheck Detail button.
- In the Preview Paycheck window of the earnings box, choose the Item Name column.
- Select a bonus item.
- Mention the gross amount of the bonus going to the rate column.
- Choose to save your preferences. If you have any further bonuses to be applied then supply the details otherwise click “close and save”.
QuickBooks Desktop helps its users in tracking the withholding taxes. This is done is accordance with the tax Filing Status and allowances in the profile of the employee.
How to Pay Bonus in QuickBooks?
In order to do that, you would need to set up and run payroll with bonus amounts. There are basically two ways of doing this:
- Add Bonus.
- Add other earnings pay type.
Steps to Add Bonus pay
For Adding the Bonus pay type you can follow the below-mentioned steps:
- Go to QuickBooks application and login to QuickBooks Online Payroll account.
- On the left of your screen, click on the Employees tab.
- Locate the name of your employee to apply the required bonus.
- Click on the pencil icon for Pay column.
- Now edit column number 3 with your answer on “How much do you pay…” via sub-area.
- Add a check mark for a Bonus item.
- Click Done.
- Choose OK and this will exit your employee profile page.
Steps to Add Other Earning:
If you have Other Earnings pay types follow the below-mentioned steps to add the same within your QB account:
- Go to QuickBooks program and log in to your QuickBooks Online Payroll account.
- Click on Employees tab by going to the left panel.
- Click on the name of the employee.
- Go to the pencil icon for Pay column and click on it.
- Again choose the number 3 column and alter as per your preferences.
- Click on the checkbox just next to Other Earnings item.
- Click done button.
- Press “done again and you will be able to exit your employee’s profile page.
- Once you are done with updating your employee’s tab then choose to run the payroll. Enter the Bonus amount in the box provided on your “Enter employee pay details” page.
Ensure that you do not mention any amount on the “Recurring amount” box of that setup page. Also, click on the pencil icon beside Other Earnings to change the name to “Bonus 1” or any other desirable name. In case if any other earning type needs to be added then choose to click on the said box.
This completes your query “How to Pay Bonus in QuickBooks”.
For any further info. on payment bonus, you are requested to get help from QuickBooks experts. They are approachable round the clock with reliable information and instant support.
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