User Query: I am a new at QuickBooks and want to know how to pay a bonus on regular paychecks in QuickBooks Desktop & how to record a cash bonus?
Bonus is a variable component of the employees’ annual package i.e. over and above the monthly salary or wages. The bonus is mostly performance-linked or given on the completion of a certain project and given as a token of appreciation to the employees by the employer.
If you want to pay a bonus to the employee in QuickBooks for the first time, you will have to set up the bonus payroll item in the QuickBooks and also add bonus pay in the type section to the employee’s profile on the QuickBooks. The below stepwise step writeup will guide you in setting up the bonus payroll item in the QuickBooks.
Read: How to submit Payroll in QuickBooks Desktop?
Setting up of bonus payroll item in QuickBooks Desktop
As discussed above, for setting up of bonus payroll item in the QuickBooks on your computer, or add bonus to payroll in QuickBooks desktop you will have to follow the below steps:
Step 1. At the initial step, you need to open QuickBooks on your computer and click on the Desktop menu at the top. After that, you need to click on the list and then payroll item list.
Step 2.Now in the next step, you need to search and click on the payroll item button at the lower side left of thepayroll item list. After that you need to click on New.
Step 3. After step 2, you need to click on custom setup >then next.
Step 4.In step 4, you need to click on wage> then next>Bonus> and then Next again.
Step 5. Now enter the name of the item and move forward by clicking on next and then select the specific expense account that you want the item to be linked with and click on Finish.
For adding the Bonus as pay type in employee’s profile
If you are paying a bonus to a specific employee for the first time you will have to add bonus as pay type in his / her profile on the QuickBooks. Know how to give or record an employee a bonus in QuickBooks, You can follow the below steps to do the same:
Step 1 At the start click on the Employees tab and select the employee’s name whom you want to pay the bonus for the first time.
Step 2. Now in the Pay section under after clicking on the employee’s name click on Edit.
Step 3 At last, click on Show all pay types>Bonus> then OK.
For adding Bonus to the pay check
Step 1.First of all, click on the Payday tab > select the employee.
Step 2.In the next step, enter the amount that you want to pay as a bonus in the Bonus field.
Step 3.Finally, click on create and approve the payroll item.
Hopefully, you must have clarity now on the setting up of the bonus payroll item, adding the bonus as pay type in the employee’s profile, and adding bonus to the paycheck. In case you still need further information on how to pay a bonus on separate paychecks in QuickBooks at any point, you can reach at our QuickBooks helpdesk team and talk at LIVE CHAT, will help you anytime 24 x 7.