How do I calculate a check between regular pay periods?

Supplemental checks

Print a check that falls between payroll checks. When you want to increase the employee's pay. you may give supplemental pay in the form of bonuses, commission pay, overtime pay, payments for accumulated sick leave, severance pay, awards, back pay, retro pay increases, and payments for nondeductible moving expenses.

You may be required by law to provide supplemental wages if an employee works overtime.

Supplemental wages can be given with the employee's regular wages or they can be paid separately. Supplemental wages are non-regular wages, which means federal income tax withholding may be different from the federal withholding tax on regular wages. Social Security and Medicare taxes on supplemental wages are withheld the same way as you would withhold for regular wages.

You can handle federal withholding for supplemental wages in one of two ways:

Withhold a flat percentage on supplemental wages (percentage method)
Combine supplemental and regular wages (aggregate method)

How you choose to handle federal withholding for supplemental wages is up to your organization. If you will give supplemental pay separate from regular pay, use the Enter Supplemental Checks view. If you will include supplemental pay with regular pay, use the Enter Payroll Checks view.

Entering a supplemental check

1. Open Connect Payroll > Employees > Enter Supplemental Checks.

2. Set up the options on the Supplemental Checks tab and then click OK.

You can update the default options for creating a supplemental check. These options are found on the Supplemental Checks tab in the Options window. You can return to the Options window by clicking Options (F12).

Options for Supplemental Checks

Journal

Gross up earnings

Payroll checks report definition

Print check after entry

Override payroll settings

Deactivate direct deposit

Monthly period number

Tax rate

3. Enter the supplemental check information.

This entry form works the same way as the entry form that you use to enter payroll checks. To learn more about entering payroll checks, see How do I enter payroll checks?

4. Verify the information that you have entered is recorded in the Employee Pay Codes pane.

The easiest way to review the information that you've entered is to use the information that displays in the Employee Pay Codes pane. You can look at the pay code

Are the pay codes and amounts for the supplemental check information correct?

Yes, the supplemental check information is correct. You're ready to calculate the supplemental check. Click Calculate Pay Codes (CTRL+C).
No, the supplemental check information is not correct. Use the Edit button (in the Employee Pay Codes pane) that's located next to the entry that needs to be corrected. Now, you can edit the pay code and amount using the check entry form.

Supplemental check options

Update the default options for creating a supplemental check. These options are found on the Supplemental Checks tab in the Options window. You can return to the Options window by clicking Options (F12).

Journal

Use the Journal box to enter the default journal for entering payroll checks.

Journal box

Gross up earnings

Will you be calculating a "gross up" wage for a supplemental check? If you will calculate a "gross up" wage, use the Gross Up Earnings box to enter the pay code for the gross up wage. To learn more, see How do I calculate a "gross up" wage for a supplemental or bonus check?

Gross up earnings box

Payroll checks report definition

Choose the report definition that you want to use to print the supplemental check. To edit the report definition, use the Payroll Checks report (Reports > Payroll Checks)..

Payroll checks report definition box

Print check after entry

Choose when you will print the supplemental check. To print the check immediately after it's entered, choose Yes. If you prefer to choose to print the check immediately, choose Prompt. If you won't be printing a check and you don't plan on printing a check ever, choose No.

Print check after entry box

Override payroll settings

Click to select the Override Payroll Settings checkbox. This will skip the deductions that would normally be deducted on periods 1, 2, or 3.

Override payroll settings checkbox

Deactivate direct deposit

To print an actual paper check instead of using a direct deposit, select the Deactivate Direct Deposit checkbox.

Deactivate direct deposit checkbox

Monthly period number

Use the Monthly Period Number box to enter 4.

Monthly period number box

Tax rate

To calculate the federal and state withholding on the supplemental check, set up the Tax Rate section.

Tax rate section