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Cutting One-Time Bonus Checks

Autosoft -

Bonus pays can happen at any time during the year but are frequently used at holidays and year end.

Usually, bonuses require a one-off check for something like a Christmas bonus. You will cut the check under your Regular Pay Group, but you will pay a specific amount or take out only some deductions.

Step 1. You must first determine if you need to establish a specific pay department so the bonus pays post to a different account than usual.

    • If you need to setup a pay department for the bonus pay, from the Dealership Payroll menu, select Setup. Choose Define Departments and create a pay department for the bonus pay so it hits the accounts you specify. The department you create will have to be added to the appropriate employees on the Employee Department Assignments screen, accessible from the Employee Information menu.
    • If you don't need to establish a specific pay department, simply choose the existing department you want the bonus pay to hit.

Step 2. Set the deductions for the bonus.

    • To deduct only FICA/Medicare from the bonus check, follow these steps:
      1. From the Dealership Payroll menu, select Enter Employee Pay
      2. Click on an employee name from the left column of the Enter Employee Pay screen. 
      3. Click the Edit Deductions button at the bottom of the screen.
      4. Click on each deduction lines you do not want to apply to the bonus pay and enter an N in the R/P field. Repeat for each unnecessary deduction and each employee affected by the bonus. If you enter 1 in the T/P/1 field on the screen, the changes you make for the bonus pay will be reversed once the pay is updated to Accounting. This will save you from having to come back to return the deductions to normal.

OR

If you are giving a bonus to multiple employees, you can save time by setting a deduction flag to N (no) for the deductions you wish to omit from the bonus pay. (From the Dealership Payroll menu, click Setup, choose Set Global Parameters, and click Set Deduction Flag. Type the deduction number and enter N. When the system asks which pay and pay group you would like to change, enter B for bonus and type the affected pay group.)

      • If you entered 1 in the T/P/1 field on the Edit Deductions screen, the changes you made for the bonus pay will be reversed once the pay is updated to Accounting. This will save you from having to come back to return the deductions to normal.
    • To deduct all taxes and manually adjust the federal and state withholding amounts, follow these steps:
      1. From the Dealership Payroll menu, select Enter Employee Pay
      2. Click on an employee name from the left column of the Enter Employee Pay screen. 
      3. Click the Edit Deductions button at the bottom of the screen.
      4. For any deductions that will not be applied to the bonus pay, type in the R/P field.
      5. Click on the federal and state deduction lines and change the R/P field to D for a specific dollar amount or P for a percentage amount. 
Note:  If you would like to withhold a federal or state tax on top of the standard federal and state deductions, enter a Y in R/P field for the federal or state deductions. The system will take the dollar amount'percentage you entered as well as the tax table amount. 
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