Skip to main content
October 11, 2022
Question

NYS healthcare worker bonus distribution

  • October 11, 2022
  • 1 reply
  • 0 views

Hi,

 

Currently using the Quickbooks Online Payroll and I'm trying to give my employees their NYS Healthcare Worker Bonuses. The problem I'm facing is that the software automatically deducts the NYS taxes, when the HWB bonuses are only subject to Federal. How do I go about giving out the bonuses in Quickbooks Online Payroll without NYS taxes? Is there an option I can click or check? Thank you!

 

1 reply

October 12, 2022

Hi there, @Biba Longier.

 

I'm here to ensure that your  employee gets the exact bonus amount.

 

Bonus pay is subject to FWT, SS, Medicare, FUTA, SUTA, state and local income.

 

As a workaround, you can cut a check without taking out taxes but you would still have to submit their portion of taxes as well as yours. I'd also suggest working with your accountant for additional guidance.

 

Furthermore, you can create a separate bonus check for your employee. Before we proceed, there are things that we should know before issuing a separate bonus check. I suggest checking this article's Understand the tax settings for issuing a separate check section to learn more: Pay an Employee Bonus.

 

Here's how to create a separate bonus paycheck:

  1. Go to the Payroll menu and then select Employees.
  2. Click Run payroll and then select Bonus 
  3. Choose the applicable settings for the bonus paycheck, then select Continue.
  4. Select the employee, then enter the bonus amount.
  5. Click the edit icon beside Payroll options.
  6. Select the payroll options you want and then click Apply.
  7. Choose Preview and Submit payroll.
  8. If you selected As net pay, the pay stub includes Employee Taxes Paid by Employer in the pay section.

 

To learn more about the basics of payroll processing, I recommend checking out this article: Payroll 101.

 

Additionally, if you want to get a closer look at your business's finances, you can run payroll reports of you choice. In this article it includes lists of several payroll reports you can use to view useful information about your business and employees.

 

Keep me posted if you have other payroll concerns. This way, we'll be able to help you out.