Skip to main content
F
fbyrc11
December 21, 2024
Question

Boss paid EOY bonuses via check and did not withhold taxes

  • December 21, 2024
  • 1 reply
  • 0 views

Hello! My boss decided to A. not without taxes from our end of year employee bonuses so the number is "more impressive" and B. not file them through quickbooks because handing someone a check is "more personal." (This is our first year using any direct deposit service for payroll.

 

How do I tell quickbooks about these payments so they properly show up on the W-2s?

1 reply

A
AdonL
December 22, 2024

You've come to the right place for assistance, fbyrc11. I can help you record the employee bonuses paid via the check and ensure they are reflected correctly on the W-2 forms.

 

The best way to record bonuses given to employees is to create a bonus paycheck in QuickBooks Online (QBO) Payroll. This action ensures that the transaction will appear on their W-2 form. I'll guide you through the process.

 

First, add a bonus pay item to your employee profile (you can skip these steps if you've already done it). Here's how:

 

  1. Go to the Payroll menu and then Employees.
  2. Choose the employee who received the cash bonus.
  3. In the Pay types section, click the pencil icon to edit.
  4. On the Common pay types section, tick Bonus.
  5. Hit Save.

 

Next, run a bonus-only payroll. Please follow the steps below:

 

  1. Go to the Payroll menu and then Employees.
  2. From the Run payroll drop-down, select Bonus only.
  3. Choose between: As a net pay - the employee gets the exact bonus amount. Taxes are still calculated but will be a company-paid tax or As a gross - the program will figure out the net amount for you.
  4. Click Continue and choose the employee.
  5. Enter the Bonus amount and pick Paper check under the Pay method option.
  6. You can Preview payroll details before submitting.
  7. Submit payroll once you're ready.

 

I'm also including this article to learn more about this process of issuing bonus checks to your employees using QBO Payroll: Pay an employee bonus in QBO Payroll.

 

Additionally, I've added these resources for your reference in filing and printing the W-2 form at the end of the year:

 

 

Maintaining accuracy and efficiency in your payroll operations is essential, fbyrc11. The Community is just a reply away if you need any further assistance creating bonus paychecks. We're committed to supporting your business endeavors and hope you have a productive day!

F
fbyrc11Author
December 22, 2024

Thank you so much!

 

Unfortunately this does not quite solve my problem. My boss does not want the company to pay the taxes on the bonuses - he still wants the employees to pay, just as part of their taxes when they file individually next year. So he just directly paid them the gross amount.

 

I'm starting to feel like this was a bit of a screw up on everyone's part. I tried to talk him out of doing it this way but then was sick and out of the office the day he gave everyone their checks. Sigh.

 

Any solution here beyond get an accountant involved to properly do the W-2s?

J
Jeff_S
December 22, 2024

Hi @fbyrc11! I hope you're doing well. I wanted to take a moment to discuss the ongoing issue concerning taxes and bonuses related to your employees.

 

I appreciate the effort in following the steps provided by my colleague. Since the issue is unresolved, I recommend contacting our support team for assistance from our payroll corrections team. Additionally, I suggest consulting a tax accountant before making payments and filing taxes.

 

Here's how to contact support:

 

  1. In your QuickBooks (QBO) Online account, click the Help icon at the top right corner.
  2. Click the Search tab.
  3. Type "Talk to support" then hit enter.
  4. At the lower right side, click Contact Us.
     

 

Moving forward, managing deductions allows for better tracking and reporting of employee benefits, which can be useful for decision-making and budgeting.

 

Moreover, a year-end checklist for QuickBooks Online Payroll enhances organization, compliance, and overall payroll efficiency, paving the way for a smoother transition into the new year.

 

Thank you for your attention to this matter, @fbyrc11. By addressing these tax concerns and your payroll processes, you can focus on driving your business forward without distractions. Our support team is here to assist you, so feel free to reach out with any questions.

Terms & ConditionsAccessibility statement