How to run a regular payroll with bonus pay?
Last modified 6/18/2020 8:29:14 AM EST | Added by Paywow Team

Applicable To
Complete Payroll Contractor Pay Employees Contractors

You can add a bonus for your employees and pay it along with the regular payroll or run a bonus pay. Bonus amounts are taxable, and the tax rate for it can be calculated based on either W-4 withholdings or by using a flat supplemental rate. 

To learn how to run bonus pay for employees, click here.

Here’s how to run a regular payroll with bonus pay:

  1. From the top menu, select Payroll >> Run Regular Payroll.
  2. Select a payroll and review the total number of employees, pay period, and the pay date for the payroll, then click Run Payroll.
  3. Enter employees' work hours.
  4. Add the discretionary bonus, non-discretionary bonus, or both.
    • Under Hours, click  +  and select Non-Discretionary Bonus (Flat amount), then enter the amount under Earnings. Using premium weightage calculation, the paid-by-hour rate is recalculated based on the bonus amount the employee earns for their work hours. The flat bonus amount is added to the gross pay.
    • In Other Earnings, select Discretionary Bonus (Flat amount). The bonus amount is added to the gross pay. Click Save &  Continue.
  5. Review Time Off and click Save & Continue.
  6. Add Deductions and Reimbursements for employees, if needed, and click Save &  Continue.
  7. Review and click Approve & Submit Payroll.

You can also skip an employee from payroll. To learn more about this, click here.

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