How do I issue a bonus check (Christmas bonus, etc.)?

1. Create a Pay Code called “Bonus” so you can track those payments.
2. When you Issue a Paycheck you will:
   1. Manually select their usual Work Area.
   2. Use the new Pay Code of “Bonus“.
   3. Type the amount of the bonus in the Salary box.

3. To withhold taxes, once the bonus amount is entered, click the Withholdings tab

4. Click the Calculate Withhold button to update the withholdings on the new total gross amount of the paycheck.

Notes:

You MUST withhold payroll taxes from a bonus check. Ask your accountant or contact the IRS for further information. See: IRS Pub 15 section on bonus and supplemental wages.

• If you are adding the bonus to their regular check, Import their hours to the paycheck screen first and then add the extra line for the bonus. If you process the check this way, keep in mind that a bonus is subject to normal state and federal taxes. If you want it to be a certain ‘net’ amount you’ll need to give a slightly larger bonus to account for taxes coming out.
• If you are cutting a separate check, you must also keep the IRS rules in mind.