Payroll Bonuses in Gusto

Information to help you run bonuses in Gusto.

This article helps you to understand what you need to know to run payroll in Gusto. 

You need to think about whether or not you want the employee to receive a gross bonus or a net bonus. You also need to think about whether or not you want the bonus to be paid via check or direct deposit.

Below are a couple of options, assuming a $1,000 bonus:

Gross vs Net

1. Employee nets $1,000 - For the employee to net $1,000, you would need to pay the associated payroll taxes.
2. Employee grosses $1,000 - The employee would net whatever amount is calculated after taxes.

Check vs Direct Deposit

1. Direct Deposit - The employee will receive the bonus via direct deposit.
2. Physical Check - The employee will receive the bonus via a check you write or print. 

• C2 Accounting Managed Payroll - If C2 Accounting runs payroll for you, please let us know:
  1. How much you are paying each employee
  2. Whether the amount is gross or net.
  3. How you want them to be paid; either check or direct deposit.
• Self-Managed Payroll - If you manage your business payroll yourself in Gusto, please see this link to this help article: Gusto Bonus Payrolls.