Bonus: Calculating net-to-gross

When you want to create a bonus check for a certain take-home (or net) amount, such as $100.00 or $500.00, you may want us to calculate the gross amount for you so taxes and deductions are calculated and included on the check.

You tell us what you'd like the take-home bonus to be, and we'll figure out how much the check needs to be. For example, if you want to give your employee a take-home bonus of $500, we'll calculate the total amount of the check before taxes.

You can't use net-to-gross bonus calculation together with any deductions (retirement, HSA, or garnishments).

Important notes about net-to-gross

• You can't use net-to-gross bonus calculation together with any deductions (retirement, HSA, or garnishments).
• If the employee has any additional withholding deducted from each paycheck, it will be subtracted from the net pay during the net-to-gross calculation. To ensure that the net pay on the bonus check is the amount you expect, add the additional withholding to the amount in the Net Bonus field.
  
  Example

  Let's say you want to give your employee a $500.00 bonus check, but the employee's profile is set up to withhold an additional $350.00 in federal taxes each paycheck.

  To ensure that the net pay on the bonus check is exactly $500.00, add the $350.00 to the amount in the Net Bonus field, like this:

  

  and we'll calculate the correct amount on the check, like this:

  

• To use the net-to-gross bonus calculation, you must pay bonuses separately from paychecks.

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