Welcome to the Community, Ash_80.
Your New Bonus Payment Detail window is asking you to review the estimate of your employee's total earnings this year. QuickBooks utilizes this information to calculate income tax on bonuses. The estimate should include all of their earnings, except this current bonus or any previous ones, and should be based on their gross amounts.
When you're finished entering your estimate, you can add a bonus item to their paycheck.
Here's how:
- If you haven't created a bonus payroll item, you'll need to set one up.
- Begin creating payroll as you normally would.
- In the Earnings box of your Preview Paycheck window, click on the Item Name column under their regular salary or hourly item to access your drop-down menu for selecting a bonus item, then choose an item.
- Enter the gross amount of their bonus in your Rate column.
- Adjust federal and/or state withholding taxes as necessary.
- Select Save and Close or Save and Next to continue creating paychecks.
I've also included a detailed resource about working with bonus paychecks which may come in handy moving forward: Create Bonus Paychecks
Please don't hesitate to send a reply if there's any questions. Have a wonderful day!
