Pay Bonuses Without Guessing the Withholding
Bonuses and commissions are first-class earning codes - taxed on the same engine, with Social Security caps and the 0.9% Additional Medicare threshold applied against real year-to-date wages.
Bonuses as real earning lines
A bonus isn’t a special case to bolt on - it’s an earning line. Fintra supports BONUS and COMMISSION earning codes (alongside OTHER and RETRO) so supplemental pay flows through the same gross → deductions → taxes → net path as regular wages, with every component traced.
| Code | Use | Notes |
|---|---|---|
| BONUS | Discretionary or performance bonus | Flat amount; taxed as wages |
| COMMISSION | Sales commission paid via payroll | Flat amount; taxed as wages |
| OTHER | Miscellaneous supplemental pay | Reason recommended |
| RETRO | Retroactive pay adjustment | Reason required |
Correct taxation on supplemental pay
From bonus pool to paycheck
Upstream in HR, Fintra can allocate a bonus pool across employees weighted by performance rating, then that allocation becomes a BONUS earning line in a payroll run - one thread from plan to payment.
Inside Fintra
Bonus runs are typically off-cycle runs, so they inherit the same approval, anomaly checks, and year-end treatment as any other pay run.
Frequently asked questions
How are bonuses taxed in Fintra?
As wages, on the same engine, with YTD-aware FICA caps. A bonus adds to year-to-date wages, so Social Security stops at the wage base and Additional Medicare applies once cumulative Medicare wages cross $200,000.
Can I run bonuses separately from regular payroll?
Yes - bonuses are usually paid in an off-cycle run using the BONUS earning code, with the same approval and traceability as a scheduled run.
Can employees defer 401(k) from a bonus?
Yes. A 401(k) elective deferral on bonus wages reduces federal-taxable wages (Box 1) but remains subject to Social Security and Medicare, exactly as the taxability matrix requires.
Where do bonus amounts come from?
They can be entered directly or flow from an HR bonus pool that Fintra allocates across employees by performance rating before it becomes a payroll earning line.
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Bonuses paid right, taxed right
Run bonus and commission pay on the same cap-exact engine as regular payroll.
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