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Employers may require to pay their employees a bonus check. QuickBooks allows you to send bonus checks on a regular paycheck. In addition, you can create separate checks to pay bonus checks to the employees. If you are a QuickBooks Desktops, there is also an option to pay your employee with a cash bonus or gift certificate. If you are eager to know how to create a bonus check in QuickBooks Online or Desktop, we will enlighten you with relevant details. Let’s get straight into it.
The guide demonstrates how to create a bonus check in QuickBooks Online and QuickBooks Desktop including the separate check, regular check, and gift certificate/cash bonus check.
How Do I Create a Bonus Check in QuickBooks Online?
To pay the bonuses to the employees, you can add the bonus payment to the existing paycheck or create an additional bonus paycheck either. In the following discussion, we will show both the procedures; adding the bonus pay to an existing paycheck and creating a separate bonus paycheck. Let’s find out how to create a bonus check in QuickBooks Online.
Adding the Bonus Pay to the Regular Check
By creating the bonus check, you can pay your employees through QuickBooks Online. However, you need to set up the employee in your account. Thereafter, you can edit the employee records. If you have set up your employee with a bonus pay type then you will see the Bonus columns at the time of creating the paychecks. To add the bonus pay to regular paychecks, you can pursue the steps mentioned below:
- Click on the “Employees” or “Payroll” option.
- Then, choose the name of your employee.
- After that, you can click on the “Edit Employee” option.
- From the “How much do you pay this employee?” option, you can click on the “add additional pay types” if you have chosen any other payment types. Or, you can simply click on the “Edit” button.
- Once done, check the “Bonus”.
- Hit the “Done” button.
By following these steps, you can easily set up the employee and edit the pay types to add bonus pay to the regular paychecks in QuickBooks Online.
Creating the Separate Bonus Check
The employee bonus check is not always tied to the payroll runs. Thus, you can prepare a separate check at any time. If you are planning to create a separate check from the regular one then you are not required to set up the bonus pay type. To know how to create a bonus check in QuickBooks Online, you can go through the following instructions:
- Navigate to the “Employees” or “Payroll” menu.
- Then, click on the “Run Payroll” drop-down menu.
- Now, select the “Bonus Only” option.
- When you see the “Run Payroll: Bonus Only” screen, you can choose the following options:
- As net pay: It is take-home pay or the amount that is left after payroll withholdings have been taken out.
- As gross pay: It is total pay or the amount that has been made before payroll withholdings and deductions are taken out.
- Click the “Continue” button.
- Add the pay date.
- Now, choose the checkbox located next to every employee. By doing so, you will include them in the bonus run.
- At this moment, you can add the bonus amount for your employees. Also, there are other steps you can perform:
- In the “Memo” box of pay stubs or cheques, you can even enter the message to display.
- Click on the “Edit” button located next to the “Payroll” options. Then, mark the options as per your wish and hit the “Apply” button. Please note payroll options include the only options that are relevant to the bonus run.
- Click on the “Preview payroll” option.
- After reviewing the payroll, hit the “Submit Payroll” option. You can also select the “Print pay stubs” or “Print checks” options. Please note that the pay stubs or checks are open in a separate window.
- Once done, click on the “Finish Payroll” option.
This is how you can create separate checks or additional checks in QuickBooks Online. Be sure you enter the right details regarding the bonus amount and selecting the employee.
How to Create Bonus Check in QuickBooks Desktop?
In QuickBooks Desktop, users can pay the bonus checks to the employee using different options. For instance, you can pay the bonus for regular checks, separate checks, or when you want to pay your employee with a cash bonus or gift certificate. Before you learn how to create bonus checks in QuickBooks, we want you to consider the following points:
- The bonus will appear on the separate check without including the regular wages on it.
- If you are using Assisted Payroll or Direct Deposit service, additional charges may apply.
- To gross up the paycheck, you can go worth the Enter net/Calculate gross feature of a paycheck.
- Regular deductions such as health insurance, retirement, or child support may apply to a bonus amount. However, you can consult this with your financial or tax advisor and plan for the deferral on a bonus check.
QuickBooks Desktop will automatically calculate the withholding taxes depending on the Allowances and Filing Status in the Employee Profile. Thus, you should consider the taxability of the bonuses. Moreover, the net pay on your bonus check can change drastically based on the disbursal and selection of taxes.
As we stated earlier, QuickBooks Desktop allows you to pay bonuses to your employees based on different ideas. In the following discussion, we will show you all the ways with detailed steps. It includes regular checks, separate checks, cash bonuses, or gift certificates.
Add Bonus to the Regular Paycheck
- Get started with creating payroll based on the regular process.
- Go to the “Earnings” box from the “Preview Paycheck” page.
- Click on the “Item Name” column from the regular salary or hourly item to see the drops-won menu. Then, select the bonus item.
- Now, move to the “Rate” column and add the gross amount of your bonus.
- After this adjust federal or state withholding taxes if required.
- Click on the “Save and Close” button. You can also click on the “Save and Next” button to create more paychecks.
Create the Separate Bonus Check
- Go to the “Employees” menu located on the top.
- Then, select the “Pay Employees” option.
- Click on the “Unscheduled Payroll” using the list.
- After this, place the checkmark for the employee for whom you want to create the bonus check.
- Once done, click on the “Open Paycheck Detail” option.
- Now, go to the “Earnings” box from the “Preview Paycheck” page.
- Click on the “Item Name” column to see the drop-down menu. Then, select the bonus item.
Note: All earning information and items located near the bonus item should be removed from the paycheck information.
- Now, move to the “Rate” column and add the gross amount of your bonus.
- Then, adjust federal or state withholding taxes if required.
- Click on the “Save and Close” button. You can also click on the “Save and Next” button to create more paychecks.
Create the Gift Certificate or Cash Bonus Check
Note: If you are using payroll schedules then you should create a bonus check as an unscheduled payroll to avoid any discrepancies in date for the upcoming scheduled payroll.
- From the “Preview Paycheck” window in the “Earnings” box.
- Then, click on the “Item Name” drop-down menu.
- Select the bonus item and be sure you leave the “Rate” field blank.
- After this, select the “Enter net/Calculate gross” box located at the bottom right.
Note: This option is available for the Enhanced or Assisted customers only. If you have Basic or Standard Payroll then you need to gross up the bonus check manually.
- Here, you can add the bonus amount in the “Check Amount” field from the “Employee Summary” option.
- Then, click on the “Tab” key.
Remember that the Net of your check will be an amount of bonus and the Bonus item will already have the gross amount added.
Conclusive Lines
QuickBooks users can easily create the bonus check in QuickBooks to pay their employees. There are different ways to pay bonus paychecks. For instance, you can prepare a regular check, separate check, or create a cash bonus/gift certificate to pay bonuses to the employee. Here, we have shown how to create a bonus check in QuickBooks Online and QuickBooks Desktop in different ways.