Add a bonus
If your employee has received a bonus, run a bonus payroll to apply the supplemental withholding rate of 22%. If you would rather aggregate the bonus amount in regular wages, add this to your next payroll.
- Click the Run Payroll tab.
- Click Run Regular Payroll.
- Next to your employee, click +Bonus.
- Enter the dollar amount.
- Finish running payroll.
- This bonus amount will be taxed as regular wages. It will also be seen as a separate line item for a bonus on the employee's paystub.
Want more info on bonus taxability? Check out IRS Publication 15 here.