[PR] Tips for Processing Bonus Checks

Process Sequences in Order:
Always process regular payroll (e.g., Pay Sequence 1) before bonus checks (e.g., Pay Sequence 2).

• Running bonus checks first can cause tax limits (like FICA, CPP, or EI) to be miscalculated.

• Processing out of order can also cause incorrect YTD amounts on pay stubs.

Control Which Deductions Apply:
If you don’t want deductions like HSA, Medical, or Dental taken from bonus checks:

• Use unique Frequency Codes for the bonus pay sequence and activate only desired deductions, or

• Check the box “Calculate on pay sequence #1 only” in PR Deductions/Liabilities.

Routine-Based Deductions:
For deductions like Federal Withholding Tax (FWT), ensure “Use YTD accumulations to correct rounding errors” is unchecked—especially when processing bonuses.

Issuing Bonus Checks (vs. Direct Deposit):

• You can issue live checks instead of direct deposits using:

• Pay Period Control → Payment Sequence tab (override Direct Deposit), or

• Employee Pay Sequence Control → File → Payment Method Override (change EFT to Check).

• If only some employees should receive checks, update each one individually.

For U.S. Customers:
Bonuses can be processed in a separate one-day pay period (e.g., 12/31 to 12/31).
However, all pay periods must still be processed in order (e.g., 12/30 must be completed before 12/31).