Bonus Payments: Key Questions to Ask

1. What is the Check Date? Is it the same as their regularly scheduled payroll?
   If the check date is separate from their normal payroll, then a separate payroll will need to be created.  Additional charges would apply and if the check date is next day, there could be a potential rush charge as well.  
2. Will bonuses be paid separately from the Employee's regular pay statement?
   NO - Have client use an appropriate Bonus earning code and add it to their regular pay statement
   YES - A separate Pay Statement type will be needed
3. For Bonus Earning Codes setup: How will the bonus be taxed?
   Bonus Earning Code Options - either supplemental OR regular options.  Supplemental is currently taxed per the IRS at 22%.  
4. For Bonus Pay Statement setup: What deductions (EE/ER) should apply?
   If not all or none, then a specific list will need to be created and assigned to the pay statement type
5. What method will bonuses be paid?
   As normal payroll - EEs will be paid based on account settings, i.e. direct deposit/live check
   All live checks - Direct Deposits will need to be blocked (typically done on the Pay Statement Type)
   Cash Payment - Client will be issuing payments directly to employees in some sort of cash value (i.e. gift card) and recording in payroll
6. Will any Bonuses be paid as a Gross Up?
   For ANY Gross Up bonus payments: Gross Up is used when employers wish to ensure a certain net pay for employees and so will pay additional wages to cover the tax liability.
   > Is OBC client? Can use Gross Up to calculate payments, but have to export and import onto separate pay statement type.  OBC clients cannot have a live check for Gross Up pay statement types.
   > Does client want to Gross Up All taxes or FICA Only?
   > Should signature populate on checks? -Verify in preview that comes through, otherwise employees will not be able to cash checks.
   NOTE: Gross Up Pay Statement types will only calculate tax liability, it will not gross up for other employee deductions
   
7. For Cash Payments who will cover the Tax Liability?
   Employees: Setup earning and record with regular pay (must have other earnings to deduct additional taxes from)
   Employer: Use Gross Up Pay Statement Type to calculate gross pay so employee's net pay is a specified Bonus amount.  TIP: Create a Gross Up Manual pay statement type by unchecking the box for delivery.