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When working with bonus checks in ACS Payroll, you should consider several factors. Is the bonus being charged to one account or to different expense accounts? Is it a separate check just for the bonus amount or is it included in a regular pay check? Do you plan to withhold taxes from the bonus?

In ACS, you can add an adjustment for bonus checks and print a separate bonus check, or you can add a cost center and pay type for bonus checks, attach them to an employee's record, and print a payroll check combined with the bonus.

To add an adjustment and print separate bonus checks



The first step is to add an adjustment in Payroll Define Lists. Then, you can select the adjustment and print bonus checks.

 To add an adjustment for bonus checks
  1. Under Advanced Tools, click the Define Lists tab.
  2. In the drop-down list, select Payroll and click Go .
  3. Under Available Lists, select Adjustments, then click Add.
  4. Enter the Adjustment Code and, in the drop-down list, select Addition.
  5. Enter an adjustment Description. For example, Christmas Bonus.
  6. Enter or select the appropriate Debit Account.
  7. Under For Period, select Period 6, since this adjustment is used only once a year.
  8. Under Tax Flags, check the appropriate tax and workers compensation checkboxes.
  9. Select or enter the Calculation Details:
    • Amount — Select if the adjustment is a dollar amount.
    • Percentage — Select if the adjustment is a percentage.
    • Period — Select if the amount is adjusted from the employee's total wages.
    • Hour — Select if the amount is adjusted from the employee's hourly wages.
    • Global Amount — Enter an amount if it applies for everyone who receives the adjustment.
    • Global Limit — Enter a limit if it applies to everyone who receives the adjustment.
  10. Click OK.
 To print a separate bonus check
  1. Under Manage Records, click the Transactions tab.
  2. In the drop-down list, select Payroll Checks and click Go .
  3. Click Preview/Issue Checks, then click Issue Checks.
  4. Select the Bank you want to issue the check from.
  5. In the Employee field, enter the employee's name or click Lookup to select the employee.
  6. In the Pay Period list, select 6.
  7. To print for this entry, do not enter a check number in the Chk. No. (Check Number) field. If you only want to post the entry to the General Ledger, enter the correct check number. Then, select the appropriate Check Date.
  8. In the Prd Start (Period Start) and Prd End (Period End) fields, enter the pay period's starting and ending dates.
  9. In the Wages section, the default wage amounts display for the selected employee. Delete the wage amounts that you do not want to include with the bonus by selecting the pay line and clicking Delete. This does not delete wages from records, but it deletes them from the pay run.
    • For exempt employees, double-click on the bonus Pay type, and enter the desired Christmas Bonus amount in the Wages section.
    • For hourly employees, double-click on the bonus Pay Type and enter 1 hour if the hourly amount displays the desired bonus amount.
  10. In the Adjustments section, default adjustments display for the selected employee. To delete the adjustments that you do not want to include, select the adjustment and click Delete.
  11. In the Taxes section, edit or delete taxes if desired by clicking into the desired tax field. Some tax fields may be unavailable if the selected employee is exempt from a specific tax or if no tax table is defined on the employee record. Do not edit these amounts until you have defined all wage and adjustment amounts.

    Note

    If you edit the FICA and Medicare tax on the bonus check (or any other pay check), the calculations on the 941 will not match the ACS Liability report. The 941 (line 6 and 7) calculates the FICA and Medicare tax based on the FICA and Medicare taxable wage. On the 941, line 6 multiplies the FICA wage (box 3 on the W-2) by 12.4% and line 7 multiplies the Medicare wage (box 5 on the W-2) by 2.9%. If the FICA/Medicare taxes are changed on a pay check, the top portion of the 941 will calculate what should have been withheld, but the ACS Liability report shows what taxes were actually withheld.

  12. To save the current check, click OK. The Issue Check window displays again.
  13. To issue additional checks, click New, or click Close to close the Issue Check window and preview your checks.

 

To add a cost center and pay type, attach them to records, and print a combined check



In Define Lists, add a new cost center and pay type for the bonus. Then, attach them to your employees' records, and print the check as a part of your check run.

 To add a cost center for bonus checks
  1. Under Advanced Tools, click the Define Lists tab.
  2. In the drop-down list, select Payroll and click Go .
  3. Select Cost Centers, then click Add.
  4. Enter a cost center Code and Description (For example, Christmas Bonus).
  5. Enter the Expense Account number or click Lookup to select an account. The Expense Account is the account to which bonuses are charged to in General Ledger.
  6. Enter the Checking Account number or click Lookup to select a checking account.
  7. On the Tax Accounts tab, accept the default account codes or change them to the correct codes. The system defaults to the last set of account codes entered.
  8. Click OK.
 To add a bonus pay type
  1. Under Advanced Tools, click the Define Lists tab.
  2. In the drop-down list, select Payroll and click Go .
  3. Under Available Lists, select Pay Types, then click Add.
  4. Enter a pay type Code and Description (For example, Christmas Bonus). Pay Type descriptions print on employee check stubs.
  5. For each applicable tax field on the table, indicate whether or not each field is taxable or non-taxable. Enter Y for taxable or an N for non-taxable.
  6. When finished, click Close.
 To attach the cost center and pay type to the employee's record
  1. Under Manage Records, click the Records tab.
  2. In the drop-down list, select Add/Edit Employees, then click Go .
  3. Select the employee's record and click Edit.
  4. On the Pay tab, click Add.
  5. In the Pay Type field, enter the pay type or click Lookup to select it.
  6. In the Cost Center field, enter the cost center or click Lookup to select it.
  7. If the employee is salaried, then select Salaried and change the gross to zero. If the employee is hourly, select Hourly, enter the number of hours as 0 and enter the hourly rate to equal the Christmas Bonus amount.
  8. Click OK.
 To print a payroll check combined with the bonus
  1. Enter Time Sheets.
  2. Print the Time Sheet Journal report.
  3. Process and print the Payroll Journal report.
  4. Preview checks, if desired.
  5. Print Payroll checks (and direct deposit stubs, if applicable).
  6. If using the Direct Deposit Feature, create an ACH File.
  7. Print the Check Register Journal report.
  8. Post Payroll to the General Ledger.

    Note

    If you want a separate check, you can issue a check through Issue Checks.