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Feb 16, 2023 9:27 PM UTC
Question

How do I record a bonus already given to an employee?

I have a client that pays her employees bonuses and then tells me afterward. How can I record these bonuses under the correct employee in QBO so that it shows up on their W-2 at the end of the year?

10 replies

Rubielyn_J
Feb 16, 2023 11:10 PM UTC

I'd be glad to share some information on how to record a bonus for your employee, @AssetAccounting.

 

You can pay your employees with bonuses along with their regular pay or through a separate paycheck.

 

If you choose to pay a bonus along with the employee’s regular pay, add the Bonus pay type before you run payroll. Here's how:

 

  1. Select Payroll, then Employees.
  2. Choose your employee.
  3. From Pay types, click Start or Edit.
  4. In the Common pay types section, select Bonus.
  5. Choose Save.

 

If you choose to give the bonus through a separate check, skip to Step 3 in this article: Pay an employee bonus.

 

Additionally, I'll be sharing these articles to help manage your employee paycheck in QuickBooks: 

 

 

Feel at ease to comment below if you have further concerns with adding a bonus to show up in your employee's W2. I'll be around to help always. Keep safe!

Feb 17, 2023 5:06 PM UTC

@Rubielyn_J  - I don't need to pay them a bonus. The owner already did outside of QB. I need to record that they were paid a bonus. How do I do this?

Jan 17, 2024 3:12 AM UTC

Didi you get an answer to this?

Feb 17, 2023 6:06 PM UTC

Hi AssetAccounting,

 

Thanks for reaching back out.  QuickBooks Online Payroll provides the ability to create a bonus cheque so your employee forms are accurate at year end.  Here's how;

 

1. From the left menu, open Payroll and then Employees

2. Click on the ▼ dropdown arrow on the Run Payroll button and select Bonus only

3. Choose whether you'd like it calculated as Net pay or Gross pay and hit Continue

4. Select the account you want to Pay from

5. Enter the Pay date

6. Place a checkmark beside the Employee

7. If you have direct deposit enabled, click on it, in the Pay method column and change it to Paper cheque

8. Enter the Bonus amount

9. Type in a Memo, as you feel necessary

10. Proceed by clicking on Preview payroll

11. When ready, hit Submit payroll

12. Enter the Cheque number for reference and then Finish payroll

You're all set!

 

Feel free to let us know if this is solved.  Your success is our number one goal and we're always happy to help!

Jan 11, 2024 10:25 PM UTC

I have the same issue where an employee was paid a net bonus outside of payroll. QBO keeps saying that my employee "needs attention" even after I have changed pay type to check. Hopefully I can get some help with this.

AlcaeusF
Jan 12, 2024 12:33 AM UTC

Hello Claudia,

 

We want to help you with your concern about the "needs attention" message in the payroll section. However, we need more information about it to provide the correct resolution and to sort it out promptly.

Can you share the exact message showing in the "needs attention"? This way, we can provide the appropriate solution to get you back on track.

 

In the meantime, you can check this article for additional guidance on paying an employee bonus using QuickBooks Payroll: Pay an employee bonus.

Please know that you're always welcome to post questions in this space. Have a great day ahead.