Adding a bonus to an employee's check is easy. Bonuses can be included in regular pay runs, or be processed as a special pay run. If you're paying a year end bonus, make sure you've covered everything so it goes smoothly.
What we'll cover
- Pay run settings
- Selecting employees
- Adding a bonus pay row
- Pay types and recurring amounts
- Holding and overriding deductions and withholdings
- Next steps
Pay run settings
If this bonus is part of a special pay run, you may want to withhold deductions that are employee-elected, or voluntary. You can do this by clicking to the left of the pay run details in the upper right.
Check the last box under "Additional Options" to hold voluntary deductions. You can also process these bonus payments as paper checks* instead of by a direct deposit to their bank account.
Before you pay bonuses as paper checks
Bonus checks are subject to tax withholding. If you've written bonus checks to employees for a flat amount without deducting taxes, you must gross up the employee wages to ensure those taxes are still accounted for in OnPay, and included in your payroll costs and filings.
Selecting employees
Select which employees, if not all, should receive a bonus.
Adding a bonus pay row
If you don't already have a bonus pay type assigned to the employee, click Add/Order Pay Rows.
Click Add Row.
Click Choose Pay Item, and select the bonus pay item. Unless you enter a recurring amount (covered next) this will not automatically add any actual pay to this (or any) pay run. Only the bonus pay item (pay type) will be added, and only for this employee (we'll cover how to add an amount next).
Don't see the pay item you're looking for?
Learn about: Adding new pay items→
Click Done when finished adding rows. You may add as many as you need.
Pay types and recurring amounts
When adding a bonus pay type to an employee's payroll, the "Recurring Amount" is optional. "Recurring Amount" allows you to decide whether this bonus is always for the same amount, or for a varying amount to be entered while processing payroll.
Adding a bonus pay type with no recurring amount
In the below example, we'll add a bonus pay item with no recurring amount. This pay type will allow bonus pay to be added for this or any other pay run for this employee. During any pay cycle, an amount can be entered here, and it will apply only to that pay run. If this field is left blank, no supplemental amount is paid.
Adding a bonus with a recurring amount
This example is the same as before, only this time, a recurring amount is entered. This bonus pay type will allow a fixed amount of bonus pay to be toggled "on" and "off", and will apply only to that pay run.
Holding and overriding deductions and withholdings
Open More to hold or override active voluntary deductions (involuntary deductions, such as garnishments or levies cannot be held or overridden). You can also override, add, or make exempt from Federal and State taxes and withholdings.
Tip: You can also add to the paycheck memo line, which can be helpful for adding a personal message when paying a bonus or gift by printed check.
After entering hours and wages, It's time to review this payroll.
Click Next.
Next steps
Review this pay run as you normally would, and click Submit Payroll.
Need help with part 2) Review?We've got you covered→
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