Payroll Bonus Paycheck

***Note that the checks are referred to as Bonus/Commission pay checks, however in AccountEdge 2015 a specific feature for paying commission was added. Click here to learn about paying commission in AccountEdge 2015 and later.

The instructions below are for creating a bonus check that is separate from a regular payroll check and is taxed at a special rate. Alternatively, if you want to include the bonus with the regular paycheck you can process payroll as normal but in the Select & Edit Paychecks window manually edit the paycheck to add the bonus amount in.

Tax Rates on Bonus/Commission Checks Bonus/Commission checks will be taxed differently than a regular paycheck. As of 2018 the US federal government recommends the supplemental tax rate of 22% will be used when calculating Federal Income Tax. If an employees wages exceeds $1 million, everything above $1 million will be taxed at 39.6%. For Canadian payroll bonuses and commissions are taxed at special rates which need to be manually calculated and entered.

Create a Bonus Wage Category

This step is optional. You can also use your regular wage category. If you create a separate Bonus Wage Category it will allow you to track bonus pay separately from regular pay. If you are setting up a Bonus Wage category for an hourly timesheet employee the Type of Wage will need to be set to Hourly. If you are setting up a Bonus Wage Category for a non-timesheet or salary employee the Type of Wage can be either Hourly or Salary.

  1. Go to your top menu bar and select Lists > Payroll Categories.
  2. Select the Wages tab at the top.
  3. Check to see if you already have a Bonus Wage Category setup
  4. If you need to set up a Bonus Wage Category click the New button at the bottom of the Payroll Category List.
  5. Type of Wages should be set to Hourly for hourly timesheet employees. Type of Wages can be set to either Hourly or Salary for hourly non-timesheet or salary employees.
  6. At the bottom of this window click the Employee button and check off all employees that this wage applies to.
  7. Click the OK button to close this window.

Process Bonus Check for Hourly with Timesheets:

In order for your timesheet employee to show up in the list of employees to be paid they must have hours on a timesheet.

  1. Create a timesheet with 1 hour or add 1 hour into an old used time sheet and code it to the Bonus Wage.
  2. Select Process Payroll in the Payroll Command Center.
  3. Select Bonus/Commission in the Process All Employees paid dropdown.
  4. Enter the appropriate payment date.
  5. Select the correct pay period.
  6. Click Next.
  7. Click the arrow to the left of the employees' names to edit the paycheck, adding the Bonus / Commission amount, and clearing or adjusting the hour entered on the timesheet.
  8. Click OK.
  9. When all edits are complete, continue with payroll.

Process Bonus Check for Hourly (without Timesheets) and Salary:

  1. Select Process Payroll in the Payroll Command Center.
  2. Select Bonus/Commission in the Process All Employees paid dropdown.
  3. Enter the appropriate payment date.
  4. Select the correct pay period (it must include the 1 hour you put on a timesheet).
  5. Click Next
  6. Click the arrow to the left of the employees' names to edit the paycheck, adding the Bonus / Commission amount.
  7. Click OK.
  8. When all edits are complete, continue with payroll.