How to Enter Cash Bonuses in QuickBooks Payroll
Published 12/23/2011 | 
Ruth, how are cash bonuses to salaried employees entered in QuickBooks? We use QuickBooks assisted payroll and any cash bonus would need to show up on the employee’s W-2 form as well. Thanks.
You can create a payroll item for bonuses in Lists > Payroll Item List.
This article is provided for informational purposes and is not intended to be construed as legal, accounting, or other professional advice. For further information, please consult appropriate professional advice from your attorney and certified public accountant.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth is the president of The QB Specialists, an Intuit Premier Reseller that offers huge savings and expert advice on QuickBooks POS and QuickBooks Enterprise. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks POS and QuickBooks Enterprise and has provided expert QuickBooks help to thousands of businesses all over the world since 1996.
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I could use some help with quickbooks. I have a few questions. One related to bonuses. The office has given an employee a bonus last week & I’m trying to correctly make sure this bonus is accounted for as far as payroll & taxes. Is there any way to edit the transaction to match an employee bonus to be shown on the w2 & how can I correct that taxes were not taken out.
Hi Tausha,
You’ll need to gross up the wages so when you deduct the payroll taxes it’ll equal the net check. All you need to do is check the button on the bottom right corner of the paycheck next to “Enter Net/Calculate Gross”, enter in the net check amount and it’ll gross it up.
Keep in mind, this means the employer will be paying all the taxes not just the employer’s share.
Ruth