You can create a bonus check at the end of the year for employees using CMS Payroll.
Prepare a list of all employees and the bonus they are to receive.
Be sure that all previous payrolls have been posted. Bonus paychecks will be prepared using all the procedures for a normal payroll cycle.
From CMS Payroll, click Enter/Edit Timecards and choose the Create Bonus Pay button.
Click the up arrow at Pay Item and choose the appropriate Pay Item,
or create a new Pay Item (Bonus). Click Select.
The Bonus Gross Pay Calculator will help you calculate the Gross Pay Amount for timecard items.
Check mark only the taxes to be withheld.
Note: Use the Deduction/Benefit selection button during the calculation of the payroll to deselect taxes you do not wish to withhold.
The federal supplemental withholding percentage will be used if selected.
The state supplemental withholding percentage being used will be that of the church's state for all employees, if selected.
To use a local tax supplemental withholding percentage, create a local tax called "BONUS" and specify a supplemental withholding percentage. The system will use that percentage for all bonus pay.
- To produce a net check of a certain amount, click on "Enter Desired Net Check Amount" and enter the net check amount. The Gross Bonus Amount will be calculated.
- To pay a Gross Bonus Amount, you may select "Enter Desired Gross Bonus Amount" and enter the amount. The system will calculate the approximate Net Check amount.
Note: The Bonus Gross Pay for employees not subject to taxes (clergy) needs to be entered as the bonus net pay amount.
Payroll Gross Pay Account to Use:
Use the same account as the employee's regular pay (the system will use the shortcut of the first regular pay item).
To use a common expense account for the bonus pay, choose "Specific Shortcut" and enter the shortcut number to use. The account must already be set up as a Payroll Gross Pay Account.
Click the Select Employees button...
and choose the employees receiving this bonus Click OK.
Click OK on the Create Timecard for Bonus window. The system will enter the gross pay amount on each selected employee's timecard.
Repeat the Create Bonus Pay for different bonus amounts.
Calculate the Payroll.
Click on the Deduction/Benefit button and check only the taxes to be withheld from the bonus check.
Print and review the Paycycle Reports (Current Earnings, Payroll Summary, and Finance Distribution).
Prepare the bonus checks. Click on Process | Paychecks and under Payment Method, choose Print Checks.
If you have employees participating in direct deposit (ACH), you will be asked if you wish to print checks for those employee. Clicking Yes will cause the system to override the direct deposit designation for the employee and print a physical bonus check instead.
If you wish to create a direct deposit file instead, answer No to the question. The system will only print checks for non-direct deposit employees. Repeat the Paychecks process selecting the ACH Payment Method for a direct deposit bonus check file.
Print final copies of the Paycycle Reports.
Post the payroll as normal. The gross pay amount will be included in each person's taxable wages. The Current Pay Period counter does not advance for a bonus payroll.