Christmas Bonus Time of Year
It's beginning to look a lot like Christmas bonus time of year! As a business owner, this is the time of year to be looking at your records. Minimally, the Profit and Loss report. Most of us don't need the records to know when the year was good or bad. You just know it. Since the economy seems to be driving along to a much better place, many businesses may find that they are looking at a prosperous 2017. Why not share some of the goodness with the employees that helped to get you there.
Christmas or Year-end Bonus: How do I figure out what to give?
Maybe you have never offered a bonus or maybe you are just starting in business. How do you figure what to give at year-end? There are several methods. Many times it depends on how long the employee has worked for you. Or maybe give a percentage of their salary as the bonus amount. You can also, just chose what you think will be a flat amount for every employee, regardless of their salary. Here is a wonderful article from Intuit that will show you three ways you can calculate the Christmas Bonus.
Christmas Bonus: How to calculate, net or gross?
That method is really up to the employer. But in my experience as a receiver of one of these bonuses, it is nice to actually get that $500.00 instead of the net amount minus the payroll taxes. Although either is fine, it is just nice to see the total amount as the "gift" from the employer for doing a good job all year. I think it looks a little more thoughtful. Here is a link to a payroll calculator that you can determine the cost to the employer when you add the taxes in to get the flat figure bonus check.
Adding a holiday letter....
Is a nice touch. Personalize it. Tell the employee why they are receiving a Christmas bonus. Maybe write it on a Christmas card. There are tons of ways of thanking them. A Christmas letter to employees is written to extend them warm wishes for Christmas or the holiday season. Through this letter, the owner can also address the achievement which the company has achieved during the previous year by giving all the credit to their efficient employee. This may help in motivating an employee to work harder for next year's goals and achieving the same with true passion. You know they will appreciate the nice touch that you took the time to thank them personally.
Following the steps to produce the bonus check....
In QuickBooks Online with Full Service payroll, it is very easy to create the check. You may not know where to find the place in the program, so the video below will show you how. Basically:
- Click Employees (just like you would do to create a payroll run).
- Click Run Payroll's drop down arrow to access "bonus"
- Decide if you will do a net check or a gross check.
- Enter the amounts, select the pay day and go!