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.
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 Consultant, online.
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 a bonus using a separate paycheck tab. But if you are using the Desktop version of QB then the 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 bonuses 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.
- In the case of direct deposits, an additional fee may apply.
- Use the “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, and child Consultant 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 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 types.
Step 1: Add Bonus pay
For Adding the Bonus pay type you can follow the below-mentioned steps:
- Go to the QuickBooks application and log in to the 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 the Pay column.
- Now edit column number 3 with your answer on “How much do you pay…” via sub-area.
- Add a checkmark for a Bonus item.
- Click Done.
- Choose OK and this will exit your employee profile page.
Step 2: Add Other Earning
If you have Other Earnings pay types follow the below-mentioned steps to add the same to your QB account:
- Go to the QuickBooks program and log in to your QuickBooks Online Payroll account.
- Click on the Employees tab by going to the left panel.
- Click on the name of the employee.
- Go to the pencil icon for the Pay column and click on it.
- Again choose the number 3 column and alter it as per your preferences.
- Click on the checkbox just next to the Other Earnings item.
- Click the done button.
- Press “done again and you will be able to edit 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.
QuickBooks Desktop helps its users in tracking the withholding taxes. This is done in accordance with the tax Filing Status and allowances in the profile of the employee.