How to Pay a Salary Bonus
A question coming up every year is How to pay your employees a salary bonus.
If you just add the gross bonus amount ($1000) to their regular check then the taxes will be taken out for you as in the regular check. This is how you would tax the bonus amount as a regular $1000 added to the check, with taxes:
But if you want the bonus NOT to be taxed, you need to set it up a bit differently, to be Exempt from Taxes:
If needed, enter an additional Shelter Code. Shelter Codes are originally established in the Shelter Code window accessed using the Codes command on the Options menu. The code entered here shelters additions to gross pay from taxation. Additions to gross pay are added when payroll transactions are processed. Shelter Codes entered on this line appear on the Payroll Master Report.
Kevin
System Trainer
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