CNA Payroll - Checks: Bonus Checks

Create a Payroll Bonus Check or line item

If you would like to create a separate Bonus Check and/or identify the amount as a Bonus amount on the Employee's Check Stub, you will need to complete the following: 

Print the employee information: Since this process involves making changes to the record of each employee who will be receiving a bonus check, we recommend printing an Employee Record before moving forward. 

From ConnectNow Payroll, click Reports > Employee > Employee Record > select the Bonus Employees and print the report.  Store these reports since you may need to refer back to them after this process.

Add the Bonus pay item: Click Setup > Pay Items and create a Pay Item called Bonus.  Set the Pay Item Type to Taxable and enter the Default Check Sequence of 1.  

If you would like to identify a specific gross pay Expense account for all bonuses, select the Expense account from the list and click Submit.

If you haven't already, you must define the distribution accounts for the Gross Pay Account affiliated with the Bonus Expense. Click Setup > Account Distributions > select the gross pay expense account Bonus from the Quick Find and enter the appropriate Liability accounts for the Deductions and the appropriate Expense and Liability accounts for the Benefits and click Submit.


You will need to calculate the correct taxes on the Bonus Check.  Bonus Checks are considered Supplemental Wages and can be taxed at a higher rate.  You may be interested in the IRS Requirements on taxing Supplemental Wages.   You may also wish to consult with an accountant.

Regardless of the method you use to withhold income tax on supplemental wages, they are subject to social security, Medicare, and FUTA taxes. 

The following may only be done when you are running a separate Payroll Process for Bonus Checks. Once you have compiled your figures, if the Bonus tax rate is different than usual for any employee, go into Employee and select an employee who will receive a Bonus Paycheck.

Click the Tax Data Tab.

Click the Override field for Federal and State and enter the amount of taxes to be withheld from the Employee's Bonus Check and click Submit.

Note: If you do not want the Deductions and Benefits to be calculated on the Employee's Bonus Check, you will be able to deselect them later in the Payroll Process Calculate Step.

If you want to print checks for employees who normally use Direct Deposit you will need to change this designation prior to calculating your Bonus Checks Payroll Process.

Click on the Employees Tab.

Find the first Employee you wish to change and click Go.

Click on the Direct Deposit Tab.

Change the ACH designation from ACH to None and click Submit (don't worry, when you change this back after the payroll is complete the ACH information will still be there).

Repeat this for every one of your employees that you will print a check for that is set up for Direct Deposit.  Remember to come back and change them back to ACH and click submit after you have completed your Bonus Check Payroll Process.

Once complete, click Payroll Process and create a new Payroll Process with the date of the Bonus Check and the appropriate Bank Account; click Submit.

Select the Employees who will be receiving a Bonus Check and click Submit.

If you are creating a separate check for the Bonus and not including the employee's Regular Pay, remove the regular pay items from each Timecard by clicking the red X on the left.

Add the Bonus Check Pay Item and enter 1 in the Hours/Units field and the gross amount of the Employee's Bonus Check in the Rate field. Click Submit.

Repeat this process for each employee receiving a Bonus Check.

Click Calculate. Or, if you do not want to include Benefits and Deductions on this Bonus check, select the Calculate Options button

A screen with all the Benefits and Deductions will display. Unmark all optional Benefits or Deductions you want to omit and click submit. Now click Calculate Payroll and complete the payroll process.

This setting will reset back automatically after you complete this payroll process. 

When the payroll is closed, if you updated the Tax overrides for any employee, go back to the Employee's record and reverse this:

Click the Tax Data Tab.

Click into the Override field for Federal and State and remove the amount or revert it to its original amount (see Employee Record reports you initially printed) and click Submit.



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