Skip to main content
A
AlabamaPamela
July 15, 2021
Question

supplemental income taxed at 22%

  • July 15, 2021
  • 2 replies
  • 0 views

How to set up a payroll that's separate from regular bi-weekly payroll.... setting the tax rate at 22% for supplemental / bonus pay?

2 replies

BigRedConsulting
BigRedConsulting
July 15, 2021

QuickBooks won't calculate supplemental taxation at 22%, though you can do it manually and enter the tax amount on the paycheck.

 

Create an unscheduled payroll to do this.

A
AlabamaPamelaAuthor
July 15, 2021

I appreciate the fast reply, but dismayed that this cannot be set up in QB.  How would I enter the tax amount on the paycheck?

G
GlinetteC
July 15, 2021

Hi there, AlabamaPamela.

 

You'll have to create an unscheduled paycheck so that you can enter the tax amount manually. I'll show you how:

 

  1. From the Employees tab, select Pay Employees.
  2. Select Unscheduled Payroll.
  3. Checkmark the name of the employee and click Continue.
  4. Click on Open Paycheck Detail.
  5. Enter the tax amount in the Preview Paycheck window.
  6. Click Save and Close.

To check your employees totals, you can run the Payroll Summary report.

 

Please reach back out to me here with any additional information, so I can get you taken care of.

J
jamespaul
November 30, 2022

Hello, Jennifer.

 

Yes, and I'd be more than happy to show you the steps on setting up a bonus with a 22% withholding tax rate in QuickBooks Online. 

 

In QuickBooks Online, we would want to use the Run payroll button to create the paychecks. Before we do it, let's make sure that we already have the Bonus pay item on the employee's profile. This way, we'll be able to pay them with the bonuses with the 22% tax withheld. 

 

To add the pay item: 

 

  1. Go to Payroll, then click the Employees tab.
  2. Find and open your employee's profile.
  3. Scroll down to Pay types, then click Edit.
  4. Expand the Common pay types section, then check Bonus.
  5. Hit Save.

Creating the paycheck: 

 

  1. Go to Payroll, then click Employees tab again
  2. Click Run payroll.
  3. Select your employee's pay schedule. 
  4. Check your employee, then enter the amount in the Bonus field.
  5. Click Preview payroll, then hit Submit payroll when you're ready. 

I'll also point out that you have the option to check and edit the tax amounts on the Preview payroll screen. Just click the pencil icon on the amount to see the tax details. Ensure that the 22% tax withholding rate is applied for the bonuses. Edit it if needed. 

 

If you need more details or documentation about this process, I'll share this article with you: Pay an employee bonus. 

 

Would you like to review your payroll amounts and liabilities for the upcoming tax time? Check out this article for a guide on running payroll reports: Run payroll reports in QuickBooks Online Payroll. 

 

I'll also add this year-end guide if you need help managing your taxes and books: Year-end guide for QuickBooks Online. 

 

Drop by again or create a new thread if you have more questions about managing your payroll in QuickBooks. Need help with your entries? Or need to run reports? Let me know the details and I'll gladly help you out. 

Terms & ConditionsAccessibility statement