Bonus Payroll

Bonus payroll allows you to process bonus payments outside the regular payroll cycle, ensuring your employees receive additional compensation on time. This feature is perfect for distributing payments such as annual bonuses or performance-based bonuses. Notably, specifying a pay period is not necessary when processing a bonus payroll, allowing flexibility in rewarding employees as needed.

Create Bonus Payroll

Here’s how you can create a bonus payroll:

• Go to Pay Runs under Payroll on the left sidebar.
• Click Create Pay Run at the top right corner and select Bonus Payroll from the dropdown.
• Select a Pay Period for the bonus payroll.
• Enter the Gross Pay (i.e., the bonus amount) for each employee.
• Click the Remove icon next to employees to exclude them from the bonus payroll.
• Select a pay date for the bonus payroll under Payment Information.
• Add any comments or notes in the Notes field for future reference.
• Click Save Draft to save your progress.

The payroll will be created in Draft status. Review the payroll details, make any necessary changes, and proceed to approval.

Submit and Approve Bonus Payroll

Here’s how you can submit a payroll for approval:

• Go to Pay Runs under Payroll on the left sidebar.
• Click Process Pay Run.
• Depending on your role and permissions, follow one of these paths:
  • If you have approval permissions, click Submit and Approve at the top right corner.
  • If you do not have approval permissions, click Submit for Approval at the top right corner. An authorized user will then review and approve the payroll.

Once your bonus payroll is approved, Zoho Spend will automatically deposit salaries into employees’ bank accounts on the scheduled pay date if you’ve set up Direct Deposit for your organization and employees. The applicable taxes will also be debited from your bank account and paid to the respective agencies.

Record Payment for the Bonus Payroll

If you’re paying employees manually via check, cash, or other methods, you can mark the payment as recorded on the payday.

Here’s how you can record payment for a bonus payroll:

• Go to Pay Runs under Payroll on the left sidebar.
• Open a payroll in the Payment Due status.
• Click Mark as Paid at the top right corner.
• In the pop-up that appears, select the Paid Through Account and Payment Mode.
• Enable Send pay stub notification email to all employees if you want to email the pay stub to your employees.
• Click Save.

The payroll will now be marked as Paid, and the applicable federal, state, and local taxes will be generated under the Taxes module.