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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)?

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Nicole 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.

 

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Nicole 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 >

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BrookWilkins

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

Where do we find this "addtional pay" ?

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Nicole 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).

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outofthisworld

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'

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Admin

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. 

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outofthisworld

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

Thanks so much!

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Admin

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

@outofthisworld Sure thing!

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