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How to correct BONUS paid in QBO?

Forum|Forum|5 years ago
December 7, 2020
1 reply
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I have a client who hand wrote a bonus check to his employee for $1000, no taxes were taken out of course. The check has already cleared the bank and ready to add from the bank feed. What is the correct way to fix this?

I see the option for BONUS on payroll. Would I just gross up until the net amount equals $1,000 and then "match" the transaction to the bank feed?

Thanks in advance!

QuickBooks Online

Best answer by KlentB

You've got it right, GIGI83.

You can create a separate bonus paycheck and then increase its net amount until it reaches $1,000.00. This way, you'll be able to match it to the downloaded transaction on the Banking page. I'll show you how to do it:

Select Payroll or Workers from the sidebar menu.
Go to the Employees.
Click Run payroll, then choose Bonus only.
Select the applicable settings for the bonus paycheck, then hit Continue.
Choose an employee, then enter the bonus amount. Make sure that the net amount is equal to $1000.00.
Select the Edit icon beside Payroll options.
Choose the appropriate payroll options, then click Apply.
Select preview and submit payroll.
If you selected As net pay, the pay stub includes Employee Taxes Paid by Employer in the pay section.

Once you're all set up and ready, it's time to categorize and match the bonus paycheck to the downloaded bank transaction.

I've also included an article that will help you track your company's payroll and employee expenses: Run payroll reports.

I'll be right here to continue helping if you need more help in managing your payrolls and bank transactions. Have a great rest of the day.

KlentBAnswer

You've got it right, GIGI83.

You can create a separate bonus paycheck and then increase its net amount until it reaches $1,000.00. This way, you'll be able to match it to the downloaded transaction on the Banking page. I'll show you how to do it:

Select Payroll or Workers from the sidebar menu.
Go to the Employees.
Click Run payroll, then choose Bonus only.
Select the applicable settings for the bonus paycheck, then hit Continue.
Choose an employee, then enter the bonus amount. Make sure that the net amount is equal to $1000.00.
Select the Edit icon beside Payroll options.
Choose the appropriate payroll options, then click Apply.
Select preview and submit payroll.
If you selected As net pay, the pay stub includes Employee Taxes Paid by Employer in the pay section.

Once you're all set up and ready, it's time to categorize and match the bonus paycheck to the downloaded bank transaction.

I've also included an article that will help you track your company's payroll and employee expenses: Run payroll reports.

I'll be right here to continue helping if you need more help in managing your payrolls and bank transactions. Have a great rest of the day.

G

GIGI83Author

Thank you so much for your help. Would you recommend having fed and state zero?

C

Charies_M

Welcome back, GIGI83.

Let me share additional information with your follow-up question about correcting bonus checks in QuickBooks Online (QBO).

Bonus is considered as a supplemental wage. Thus, it is subject to a tax. The Federal Withholding tax used for bonuses is 22% while the State tax varies on which state you belong to. That said, having the federal and state tax zero is not advisable.

I'm just a post away if you have other questions or concerns. We're always here to lend a hand. Thanks for posting and I wish you have a lovely day ahead.

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