Additional Earnings: Bonuses
Employees may receive many different types of supplemental payments from their employers such as bonuses, commissions, production pay, etc., as an incentive for increased productivity. Under the FLSA, these payments may be a factor in determining an employee’s regular rate of pay for overtime purposes.
Use the default Bonus earnings type to add bonuses as a fixed dollar amount in a payroll run.
How is withholding calculated for bonuses?
Bonuses are considered supplemental earnings, and taxes may be calculated on bonus amounts at the flat supplemental rate of 22% if paid separately from regular wages in TriNet Payroll.
If someone has regular earnings and supplementary earnings in the same paystub, TriNet Payroll will withhold taxes from the combined amount based on the the W-4 information and annualized wages. The supplemental rate is only used for supplementary earnings paid in an off-cycle run, without regular wages.
How to pay a bonus?
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in their normal paycheck, see these instructions for adding earnings to the paystub.
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outside of normal payroll schedule, create an off-cycle payroll run and add the bonus into the paystub.
Make sure to add the bonus using the default Bonus pay type.