slide 1: How To Creating Bonus Paycheks For
QuickBooks Payroll Presented By: QuickBooks Error
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slide 2: How To Creating Bonus Paycheks For QuickBooks
Payroll. There are several options when paying bonuses to employees including the bonus amount on
the employees regular paycheck creating a separate paycheck for the bonus amount only or
reporting a cash or gift bonus through a paycheck. Once the method of paying the bonus is chosen 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 and whether the bonus is on the same or separate check than the regular payroll wages. Bonus checks are subject to normal tax deductions including state and federal taxes. However
they may be subject to supplement tax rates for federal and state withholding. QuickBooks does
not automatically calculate the state or federal withholding supplemental rate on bonus wages.
To calculate the supplemental rate for state or federal withholding you must manually change
the amounts calculated on the paycheck.
slide 3: ● There is a federal supplemental wage rate of 25 for supplemental wages identified
separately from regular wages: "withhold a flat 25 no other percentage allowed." If the
supplemental wages are more 1 million withhold using the 39.6 rate. Source - Section
7 - Supplemental Wages of Circular E Employers Tax Guide. ● Some states also have supplemental wage rates if you are unsure of the state s individual
requirements for the use of supplemental rates please contact your tax/financial advisor or
your state. Quick support helpline: TOLL FREE
1855 441 4417
slide 4: Bonus Taxation options: Intuit recommends you follow the guidelines outlined in Source - Section 7 - Supplemental
Wages of Circular E Employers Tax Guide. Additional options: ● You can calculate withholding taxes from a different pay schedule when creating the check
i.e. annually instead of weekly to reduce the amount of taxes withheld. To do this the
employee record would need to be edited to change the pay frequency prior to creating the
paycheck. ● You can calculate withholding taxes from the supplemental tax rate and override the
withholding amount on the paycheck 25 federal supplemental rate. ● You can allow QuickBooks to calculate withholding taxes at the standard tax rate within the
paycheck. ● You can allow QuickBooks to calculate withholding taxes at the standard tax rate within the
paycheck with and without the bonus amount then override the withholding amount on the
paycheck.
slide 5: Note: Quickbooks Desktop Payroll Assisted customers: Please contact Payroll
Support at 888.712.9702 if bonus check needs to be reported in a prior quarter or
year. After you create bonus checks you need to send them to QuickBooks Desktop
Payroll Assisted for processing. You can create both regular paychecks and bonus
paychecks in a single payroll as long as both the bonus checks and paychecks have
the same date or you can create and send them separately. The usual deadline for
sending payroll applies. Choose the type of bonus check to create: ● Paying a bonus on a regular paycheck ● Paying a bonus on a separate paycheck ● Paying employees with a gift certificate or cash bonus
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