This is a step-by-step guide that has been compiled for users to be able to seamlessly set up Sage 50 Bonus Payroll. With the help of this article, all curiosity questions will be answered, this holds information about Bonus payroll, steps on how to create one, and much more important information. Let us proceed with this further, to know in detail.
A bonus payment is described in Sage 50 as an extra payment provided to employees in addition to their income. The corporation provides this incentive payment to employees as recompense for their hard work or dedication to the job.
How to Create a Bonus Income in Sage 50?
Now, that you are aware of what a Bonus payment is, let us dig further to know how we can create one. It is not very complicated to create one, with the help of the steps mentioned, one can easily do so. Take note that you perform steps accurately to avoid unexpected errors from occurring.
Step 1: To rename of the income categories as Bonus
- First, Go to setup.
- Next, proceed to move to Set up.
- After the subsequent step, select Payroll, then hit on names, and then Income and Deductions.
- The next step is to continue, rename an income field with the new name of “Bonus”.
Step 2: For the new revenue category, choose a connected account
- First, click on Linked Accounts, In the Payroll section of the Settings box.
- Next, Choose Incomes.
- Now, Select the Bonus income account (If an account is not available, one must be created).
- Thereafter, Click OK to close the Settings window.
- If your company uses Expense Groups, you must also include the income there.
Step 3: Check the following options for this new income
- First and foremost step, In the Settings box, proceed to hit on Income under Payroll.
- After the subsequent step, The bonus will be displayed here; pick Income from the Type column.
- Lastly, Choose the relevant taxes to be levied.
Step 4: To go to each employee that will have a Bonus
- First, Under Payroll From the home screen, choose Employees
- Thereafter, navigate to the Income section.
- Mark the box next to the bonus and, if required, enter the amount.
How to Setup Hourly or Salary Employees for a Bonus or Benefit in Sage 50?
Since generally the Bonus is part of the gross pay, then taxes are calculated in the bonus account. Now, let us proceed further to learn to set up Hourly or Salary Employees for a Bonus Sage 50. To do the same, follow the steps given below, accurately.
Part A: To Enter the amount of the Bonus on a Paycheck
- First and foremost, proceed to click Payroll, Payroll Settings, and Maintain.
- Next, Proceed to Pay Structures and Company Information.
- After the subsequent step, now, Make Bonus the first available and unutilized Hourly and/or Salary Pay Type.
- Next, Choose a GL Account Number for the new pay type(s); this is often an expense account.
- Next, hit the Finish tab.
- Now, Maintain, Employees/Sales Reps; for hourly employees Uncheck.
- Once the above step is done, Choose the first Employee ID that applies.
- Next, proceed to select the Pay Info tab.
- Thereafter, Enter a 1.00 hourly pay rate for the Bonus Pay Type.
- Click the Save button.
- Repeat Steps 7-10 for each employee as needed.
- When producing paychecks with a bonus amount
- Simply put the bonus amount into the Bonus pay type for salaried personnel.
- Enter the bonus amount as the number of Hours for the Bonus pay type for hourly employees.
Part B: To Enter the amount of the Bonus in the employee record, for hourly employees only
- Select Maintain, Employees/Sales Representatives.
- Next, proceed to Select the first applicable Employee ID.
- Now, Select the Pay Info tab.
- Thereafter, If the bonus is entered for the Bonus Pay Type, provide an Hourly Pay Rate of the entire amount.
- After the subsequent step, Steps 3-6 should be repeated for each employee as needed.
- Lastly, When creating paychecks with a bonus amount, use 1 as the number of hours for the Bonus pay type.
What Bonus is shown on the Payroll Register Report?
The Bonus will be displayed as hours on the Payroll Register Report. This directly means that you may have to subtract the bonus hours when calculating the total employees’ hours worked.
Are bonuses paid in addition to salary and wages?
Generally, Wages include, but are not limited to, salary, hourly compensation, piece rate, or work payment. Bonuses and commissions. Overtime and vacation compensation are available.
How does one distribute bonus funds to employees?
For the distribution of Bonus funds to employees, Once you’ve calculated the performance and compensation percentages for each individual, multiply them by one. Then go ahead and add up everyone’s ratios. Divide each person’s portion by the total rate to calculate each person’s share of the bonus pool.