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Sage 50 Payroll Bonus Payments – Setup, Create, Enter Bonuses

Sage 50 Payroll Bonus Payments

Setup Bonus Account In Sage 50

Sage 50 Payroll streamlines the process of managing bonus payments for employees, allowing employers to easily create and record one-off or regular bonuses. With automatic tax and National Insurance contribution calculations, employers can save time and reduce errors. Sage 50 Payroll also generates reports to help keep track of bonus payments and ensure compliance with HMRC regulations. Sage 50 Payroll Bonus payments can be an important way to reward hardworking and dedicated employees, and with Sage 50 Payroll, the process is simple and hassle-free. Whether giving out year-end bonuses or rewarding employees for a job well done, Sage 50 Payroll has got you covered. AccountsPro team will present the guide related to Sage 50 Payroll bonus payments and how to add extra money and how to make correct Sage 50 Wages Journal Entry in simple steps.

When Need Recording Employee Bonus Payments In Sage 50?

Majority of the time when the company achieves its business objective they appreciate its employees by providing additional pay excluding their salary as a reward for their dedication. The main objective of offering a bonus is to allocate the profits of the organization to the employee. It in turn helps in enhancing employee morale and business productivity. Also with Sage 50 Direct Deposit Setup employers can easily pay the employee’s salary. The bonus payment is created in Sage 50 when the company needs to pay a bonus to their employees. This additional income is recorded in the Sage payroll. Let’s delve into the below section to know the process of creating the bonus payment in Sage 50. Also, the user needs to show these bonus items in Sage 50 Payroll Reports.

Setup Sage 50 Payroll Bonus Payments

Here are the steps to setup Sage 50 payroll bonus payments, follow all the steps carefully:

Step 1: Change one of the income categories to a Bonus

  • First, you need to go to setup and choose settings.
  • Then, Click on Payroll > Names > Income & Deductions.
  • After that, change the name of available income fields to the Bonus.

Step 2: Verify the settings for the new income

  • Click on Income under Payroll in the Settings window.
  • Under the Type column, select “Bonus” to make it appear.
  • Choose the relevant taxes to be applied to the bonus.

Step 3: For the new income category choose a linked account.

  • Click on linked accounts under payroll in the Setting window
  • After that, click on the incomes.
  • Now, choose the account for the Bonus income (If you don’t have any available account, you need to create an account).
  • After that, you need to click on OK to close the settings window.
  • In case your company uses Expense Group, you will need to link the income there as well. (Settings, Payroll, Linked Account, Expense Groups)

How to Create a Bonus Payment in Sage 50?

Here is the list of steps you need to follow to generate a bonus payment in the Sage 50 payroll:

  1. Firstly rename the income category as Bonus with the below steps:
  2. Locate Setup button
  3. Hit Settings tab
  4. Search Payroll option
  5. Click Names and then choose Income and deductions
  6. Find the available income box in the Bonus tab
  7. Check the new income settings with the below pointers:
  8. Open the settings page
  9. Choose Income below the payroll
  10. The bonus will display here, choose income below the Type column
  11. Choose the suitable taxes that need to be applied
  12. Click on a linked account for the new category named income
  13. Open the settings page
  14. Give a hit on Linked Accounts below the payroll button
  15. Choose Incomes tab
  16. Click on the account for an income bonus
  17. Hit the Ok button to close the Settings page
  18. If the company contains Expense Groups then you will require linking the income as well
  19. Locate each employee with a bonus
  20. Choose the Employees button from the home window below the payroll
  21. Select Income button
  22. Place a mark alongside the bonus
  23. Now fill in the amount if needed

Its advisable user can take Sage 50 Payroll Data Backup before following the above process which helps to get back all things if something goes wrong.

Help Setting UP Bonus Item Sage 50 Payroll

Hopefully, the guide helped you to create the payment in the Sage 50 payroll. There might be several other components or tasks that might confuse you while setting up the employee wages including commission, bonus, and overtime. To explore more get connected with a professional team on Sage 50 Payroll Chat.


FAQs – Pay Bonuses, Overtime, Commission To Employee Sage 50

Can I Set Up A Bonus As A Separate Income In Sage 50?

✅Firstly rename an income named as Bonuses
✅ Now create it as a type of income
✅ Link the bonus option to wages
✅ Locate the employee profile
Unselect bonuses income
✅ Choose paycheque & bonuses will appear for you to fill in an amount
✅ Now all taxes get deducted from bonuses

How Would I Record A Bonus Payment To An Employee To The Paycheque?

✅ Generate a new payroll income section labeled bonus as Type=income
✅ Adjust the linked account below income for the bonus to the suitable G/L account
✅ Verify the bonus type of the employee you need to pay a bonus to

Do I Need To Create A Separate Record Entry For Bonuses?

You should have a particular category. In case the bonus is not linked to work hours, it does not generate any EI-insurable hours.

Can A Bonus Appear On The Same Paycheque As The Basic Paycheque?

Yes, a single cheque contains multiple payment types.

Company Pay Taxes For The Bonus Or Not?

The company must pay taxes for bonuses and report bonus payments to HMRC as the bonuses are calculated as earnings.

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