My client wants to pay bonuses to their employees. For one employee, the entire bonus is deducted in income tax, resulting in a net bonus of zero.

Hi david1980,

It's great to hear that you're providing your employees with a bonus.  I'm sure they'll appreciate your extended kindness.  I can relate to the concern when the total shows as zero during the process.  QuickBooks Online Payroll provides two ways to run a Bonus only, as net or gross pay.  I'd be happy to help!

One factor to look into would be the TD1 for the employee.  This is to review any additional tax amounts they've requested to be deducted from each pay, that would reflect the outcome when creating a bonus.  You'll have the ability to remove the amount and then re-enter it after creating the bonus cheque.  I'd also suggest selecting the option to run the bonus as Gross pay to prevent any deductions.

If you continue to experience the same outcome, please contact us.  It would be our pleasure to work with you independently, and help you successfully provide a bonus to your employee without further complication.

If you have additional questions, please reach back out.  We'd be glad to assist!