x
Highlighted
Admin

Can I use Square Payroll to pay my employees a bonus?

I need to pay out a bonus to my employees. Can I use Square Payroll to do so? Also, can it handle both one-time bonuses, and recurring ones (e.g.: for commission)?

Tags (1)
Message 1 of 14
4,066 Views
1 Best Answer

Accepted Solutions
Highlighted
Square

Re: Can I use Square Payroll to pay my employees a bonus?

Best Answer

Yes you can! Bonuses, also called supplemental income, can be easily processed through Square Payroll along with regular wages on the employee's paycheck. You may use the column titled “Additional Pay” to enter the appropriate amount of bonuses. Federal and state income tax will be withheld as if it were a regular payroll. Note that Square Payroll doesn’t currently allow for a standalone bonus payroll run with advanced settings to change taxation on the bonus.

 

For an illustration of how this will look in your online Square Dashboard, check out the video tutorial below.

 

View Best Answer >

Message 2 of 14
5,673 Views
13 REPLIES 13
Highlighted
Square

Re: Can I use Square Payroll to pay my employees a bonus?

Best Answer

Yes you can! Bonuses, also called supplemental income, can be easily processed through Square Payroll along with regular wages on the employee's paycheck. You may use the column titled “Additional Pay” to enter the appropriate amount of bonuses. Federal and state income tax will be withheld as if it were a regular payroll. Note that Square Payroll doesn’t currently allow for a standalone bonus payroll run with advanced settings to change taxation on the bonus.

 

For an illustration of how this will look in your online Square Dashboard, check out the video tutorial below.

 

View Best Answer >

Message 2 of 14
5,674 Views
Highlighted

Re: Can I use Square Payroll to pay my employees a bonus?

Where do we find this "addtional pay" ?

Message 3 of 14
4,012 Views
Highlighted
Square

Re: Can I use Square Payroll to pay my employees a bonus?

The Additional Pay column can be found on the Run Payroll screen.  You will enter any additional pay in the colum to the right of the hours columns. Again, the Additional Pay column can be used to pay additional bonuses, commissions, or other wages associated with the pay period. These amounts will be taxed and the net pay transmitted via direct deposit (or check).

Message 4 of 14
4,009 Views
Highlighted

Re: Can I use Square Payroll to pay my employees a bonus?

Where can you input a note describing the additional pay?  Like something that says 'holiday bonus' or 'christmas bonus'

Message 5 of 14
1,172 Views
Highlighted
Square Community Moderator

Re: Can I use Square Payroll to pay my employees a bonus?

Hey @outofthisworld! Welcome to the Seller Community.

 

If you go to the gross pay dollar amount, there will be 3 blue dots and if you click those- you can select to > Add Memo and put a note there! 

 

The note will appear on the paystub. 

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 6 of 14
1,148 Views
Highlighted

Re: Can I use Square Payroll to pay my employees a bonus?

Thanks so much!

Message 7 of 14
1,140 Views
Highlighted
Square Community Moderator

Re: Can I use Square Payroll to pay my employees a bonus?

@outofthisworld Sure thing!

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 8 of 14
1,138 Views
Highlighted

Re: Can I use Square Payroll to pay my employees a bonus?

Has Square updated the ability to adjust the taxes withheld from a bonus payment?  Employee has overpaid in taxes and does not want additional tax withheld from their bonus. 

Message 9 of 14
975 Views
Highlighted
Square Community Moderator

Re: Can I use Square Payroll to pay my employees a bonus?

Hi @smartstreet!

 

I reached out to the Payroll team and they said you have the ability to mark them as exempt from state and federal income taxes.

 

In the employee's profile, under their W-4 and state tax settings, you'll select "this employee claims exemption from withholding". We don't have the ability to mark them as exempt from social security or medicare taxes, though.

Ashley C
Community Moderator, Square
Sign in and click Mark as Best Answer if my reply answers your question.
Message 10 of 14
938 Views