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January 15, 2024
Question

Trying to pay bonus ACH. but says paper check

  • January 15, 2024
  • 1 reply
  • 0 views
trying to pay bonus ACH, but says paper check only. Regular pay gets paid ACH

1 reply

January 15, 2024

I understand the importance of using ACH when paying employees bonus in QuickBooks Online (QBO), mdouthit1. I've got some insights to provide regarding this matter.

 

Currently, the option to pay your employee bonus using ACH is unavailable. This is why, you're getting a message to issue payment exclusively via paper check. As a workaround, you have the option to either pay the bonus along with the regular pay or through a separate paycheck. 

 

However, if you choose to pay the bonus separately, you can apply the federal supplemental tax rate of 22%, or 37% for bonuses of $1,000,000 or more. You can check this article to help you understand the tax settings for issuing separate checks in QuickBooks Online. : Pay an employee bonus.

 

In addition, you can utilize the payroll reporting features in QBO. These reports can be customized to suit your specific needs, allowing you to manage payroll taxes and monitor employee expenses effectively.

 

If you need further assistance with paying bonuses or other related concerns. The Community and I will be happy to help and give you the necessary guidance. Take care!