There may be a time, especially around year-end, when you may want to provide a bonus check to your employee. There are a few ways to do this. The steps below outline the most common way this is accomplished.
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Go to Program → Payroll → Employee Records.
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Setup a find to search for an employee. Click to highlight their name and click Change from the left sidebar.
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Click the Pay Items tab and then click Add in the bottom left corner.
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In the Description field select Bonus from the drop-down list. If it is not there, start typing Bonus and tab to the next field.
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If you typed in Bonus you will see a pop-up saying, The code “Bonus” does not exist. Would you like to add it?. Click Yes.
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Next, set the Pay Frequency. The pay frequency is determined by how often the employee will receive this bonus througout the year. For example, if they receive this bonus once a year, it would be an annual frequency.
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Set the pay Type according to whether the person is a salaried or hourly employee.
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Set the Standard Rate to what you want to pay as a bonus for salaried employees and the hourly rate for hourly employees.
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Then, set all of the appropriate expense accounts.
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If the employee qualifies for tax exemption please proceed to step #11. If not, Save your changes and proceed to step #13.
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If the bonus should be exempt from taxes, click Taxes/Deductions at the bottom to make the necessary changes.
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Put a check in each Exempt checkbox to the right of all the Add On Amounts and Save your changes.
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When calculating payroll for bonuses be sure to click the Frequency of the bonus you entered on step #6. This will either add the bonus as part of the current payroll or you can select to pay only the bonus by choosing the applicable frequency.
