Additional Pay Options

What are additional pay options?

Additional pay options, such as a bonus or commission, are additional checks that are paid out to an employee and are separate from their regular pay. Additional checks can be run along with your regular payroll or as a separate payroll.

When should I use an additional check vs an extra payroll? 

Additional Check	Extra Payroll
Add an extra check to your existing payroll or if you need to change tax frequency	Running a separate payroll outside of your regular payroll schedule
Examples: Paying a contractor for 2 different jobs – one is on main payroll and the other is an additional check Reimbursement payments Net check Paying a bonus, but it has a different tax frequency	Examples: Paying an employee’s last paycheck End of year bonuses Health insurance compensation 401(k) payment End of year business owner’s paycheck

Adding Additional Checks

• From the Dashboard, click on the “Pay an additional check” tile.
• In the “When would you like to pay?” table, under “Payroll Options”, select how you’d like to process the additional checks
• If payroll has not been started, you’ll have the option to run an extra payroll for just these checks.
• Select the check date when your employees should get the funds.
• Enter the pay period start and end dates, if different than the default.
• Select an active employee to pay.
• Select the check type.

Check Type	Description
3rd Party Sick Pay	Instead of sick pay coming out of payroll, you can pay it out separately Example: An employee is out on leave and getting paid by their insurance company but wages still need to be reported
Alternate pay frequency	Pay an employee using a different pay frequency Examples: Paying monthly instead of semi-monthly Paying an independent contractor monthly and regular employees weekly
Bonus	Give an employee a bonus check
Commission	Give an employee a commission check
Custom Income Tax	This check type allows you to enter specific amounts for State and Federal tax withholdings Example: Your accountant or employee may want to change tax withholdings
Final check	Issue an employee’s last check
Missed check	Send a check to an employee that didn’t get paid
Regular Check	Pay an employee standard earnings
Reimbursement (No Tax)	An employee paid for something out of pocket and is repaid by the company for their purchase
Shareholder Health Insurance	Pay for health insurance benefits to an S-Corp shareholder that owns 2% or more of the corporation
Other (Taxable)	If a pay type doesn’t fit your requirements, this option lets you pay an employee additional taxed income

• Select the Pay Type. (Not all options are available for all check types. We’ll pre-select them for you to make sure your payroll is correct.)

Pay type	Description
Enter Gross	Enter the gross amount, then we’ll calculate the net amount they’ll take home after taxes and deductions
Enter Net	Enter net amount (what your employee will take home), then we’ll calculate the taxes and gross pay amount

• Select how you want to handle Income Taxes

Income Tax Option	Description
Standard	We’ll calculate the income taxes the employee would owe
Custom	You’ll enter the specific amounts for State and Federal Withholdings

• Select how you’d like deductions to come out of the check

Deduction Option	Description
Standard	We’ll calculate the standard deduction amount(s)
Custom	You’ll enter a specific amount for one or more deductions on the Payroll Entry page
None	You’ll stop deductions from being withheld on the Enter Payroll page

• Select the pay frequency. Your default pay frequency is marked with an asterisk (*).
• Use the plus sign (+) to add another employee
• When you’re all set, click the “Continue to Enter Payroll” button.
• On the Enter Payroll page, additional checks will be added at the very bottom of the page.

Enter Payroll – Additional Check Setup

• In the “Other Compensation” column, enter the check amount
• In the “More” column:
  • You may need to adjust the deductions. If you choose override or suppress on the previous page, click the pencil icon to open the deductions popup.
  • You may need to adjust the taxes. If you choose custom on the previous page, click the pencil icon next to taxes to open the taxes popup. 
• When you’re all set, click the “Preview Payroll” button and complete payroll approval as normal. (Additional checks will also display at the very bottom of the Payroll Preview page.)