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:
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Examples:
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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:
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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.)