Bonus or Commission for Hourly Employees

Some companies offer a bonus or commission amount on employee paychecks. These are examples of lump-sum earnings. Other examples of lump-sum earnings include retroactive pay, jury duty, maternity leave, and so on.

Salaried employees will simply use a pay level titled Bonus (or some other lump-sum earning pay level). In this case, just enter the appropriate dollar amount in these pay levels during payroll entry.

However, hourly employee pay levels are based on time (hours), not a fixed amount. Since you cannot have both an hourly and salary pay level on the same paycheck, this must be set up in another way.

There are two methods by which to accomplish this:

  • Create an hourly pay level with a rate of $1.00 per hour
  • Set up a lump-sum earnings payroll field for hourly employees