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Creating a Bonus check/Direct Deposit
Create a new timesheet batch and enter a timesheet adjustment for each employee with 0 hours, the gross dollar amount of the bonus and the element(s) to be charged. If GMS is to calculate the taxes, this timesheet adjustment batch will need to be run through the payroll processing menu starting with the Leave Balance menu. On the Prepare Payroll menu, if no employee deductions are to be withheld, uncheck the “Include all deductions” box. This applies to Special Pay, if used, as well. GMS will calculate the mandatory taxes based on the gross amount from the timesheet adjustment batch. The rest of the Payroll Processing menu can be run.
Note: If a physical check is to be printed instead of a direct deposit, direct deposit will need to be turned off. To accomplish this, go to Tools, Organization, PR Direct Deposit, click on edit and take the check out of the “active” box and save. This check needs to be put back after the bonus payroll is finished.
GMS recommends following the IRS guidelines on Supplemental wages as it pertains to Federal withholding taxes. Please follow the below link to Publication 15 and visit Section 7. Supplemental Wages. 2024 Publication 15 (irs.gov)
To only have certain taxes withheld from the bonus, an additional payroll adjustment needs to be entered. A timesheet adjustment batch will still need to be created but not used in preparing payroll. This TI batch will need to be posted on the Tools, Post timesheet batch.
A payroll adjustment will need to be created for each employee. No check date, no check number, and no check in the padj box should be entered. The gross amount will be recorded in the RT Amount column. Click on “Calculate Taxes” button. To calculate a specific percentage of Federal or State taxes, enter the percentage in the appropriate field in the % Tax Rate box. Dollar amounts will appear in the Taxes grid.
Remove the dollar amounts from the appropriate fields as desired. Save the adjustment.
To create payroll with this adjustment, skip the leave balance menu and go to the Prepare Payroll menu. A message stating no timesheets have been processed through leave, click on Ok to proceed. Click the prepare payroll button and enter the starting and ending date for the bonus.
A payroll register will be displayed. Each employee receiving the bonus will be listed with CADJ. After the payroll register has been printed and proofed, proceed with the remaining steps on the payroll processing menu.
Note: If a physical check is to be printed instead of a direct deposit, direct deposit will need to be turned off. To accomplish this, go to Tools, Organization, PR Direct Deposit, click on edit and take the check out of the “active” box and save. This check needs to be put back after the bonus payroll is finished.
GMS recommends following the IRS guidelines on Supplemental wages as it pertains to Federal withholding taxes. Please follow the below link to Publication 15 and visit Section 7. Supplemental Wages. 2024 Publication 15 (irs.gov)
To only have certain taxes withheld from the bonus, an additional payroll adjustment needs to be entered. A timesheet adjustment batch will still need to be created but not used in preparing payroll. This TI batch will need to be posted on the Tools, Post timesheet batch.
A payroll adjustment will need to be created for each employee. No check date, no check number, and no check in the padj box should be entered. The gross amount will be recorded in the RT Amount column. Click on “Calculate Taxes” button. To calculate a specific percentage of Federal or State taxes, enter the percentage in the appropriate field in the % Tax Rate box. Dollar amounts will appear in the Taxes grid.
Remove the dollar amounts from the appropriate fields as desired. Save the adjustment.
To create payroll with this adjustment, skip the leave balance menu and go to the Prepare Payroll menu. A message stating no timesheets have been processed through leave, click on Ok to proceed. Click the prepare payroll button and enter the starting and ending date for the bonus.
A payroll register will be displayed. Each employee receiving the bonus will be listed with CADJ. After the payroll register has been printed and proofed, proceed with the remaining steps on the payroll processing menu.