## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/en-ca/payroll/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Bonus Payroll

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**Note:** This feature is available only for certain plans of Zoho Payroll. Visit our [pricing page](/en-ca/payroll/pricing/) to check if it’s available in your current plan.

Bonus payroll allows you to process bonus payments outside the regular payroll cycle, ensuring your employees receive additional compensation on time. This feature is perfect for distributing payments such as annual bonuses or performance-based bonuses. Notably, specifying a pay period is not necessary when processing a bonus payroll, allowing flexibility in rewarding employees as needed.

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## Run a Bonus Payroll

**Prerequisites:** Before you can start running payrolls for your organization, make sure you have completed the following:

*   [Configured your pay schedule](/en-ca/payroll/help/employer/getting-started/configure-pay-schedule.html)
*   [Configured taxes](/en-ca/payroll/help/employer/getting-started/configure-taxes.html)
*   [Added employees](/en-ca/payroll/help/employer/getting-started/add-employees.html)
*   [Configured Prior Payroll](/en-ca/payroll/help/employer/getting-started/configure-prior-payroll.html), if enabled

Running a bonus payroll in Zoho Payroll involves three main steps:

1.  [Creating a bonus payroll](/en-ca/payroll/help/employer/pay-runs/bonus-payroll.html#create)
2.  [Submitting and approving the bonus payroll](/en-ca/payroll/help/employer/pay-runs/bonus-payroll.html#approve)
3.  [Recording payment for the bonus payroll](/en-ca/payroll/help/employer/pay-runs/bonus-payroll.html#record-payment)

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### Step 1: Create a Bonus Payroll

To create a bonus payroll:

1.  Go to the **Pay Runs** module.
2.  Click **Create Pay Run** on the top-right
3.  Select **Bonus Payroll** from the drop-down.

4.  Select a pay period for the bonus payroll (this step is optional).
5.  Enter the **Gross Pay** (i.e., the bonus amount) for each employee.
6.  Click the **Remove** icon next to employees to exclude them from the bonus payroll.
7.  Select a pay date for the bonus payroll under _Payment Information_.
8.  Optionally, add any comments or notes in the **Notes** field for future reference.

9.  Click **Save Draft** to save your progress or click **Save and Continue** to proceed.

The payroll will be created in **Draft** status. Review the payroll details, make any necessary changes, and proceed to approval.

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### Step 2: Submit and Approve the Bonus Payroll

**Prerequisites:** If you have configured Direct Deposit, ensure you have sufficient funds in your bank account to cover salaries of employees whose payment mode is Direct Deposit.

**Warning:** Once a regular payroll is approved, it cannot be edited or deleted.

To submit or approve a payroll:

1.  Go to the **Pay Runs** module.
    
2.  Click **Process Pay Run**.
    
3.  Depending on your role and permissions, follow one of these paths:
    
    *   If you have approval permissions (such as an admin or finance head), click **Submit and Approve** on the top right.
    
    *   If you don’t have approval permissions, click **Submit for Approval** on the top right. An authorized user will then review and approve the payroll.

**Insight:** If you have enabled [Zoho Books integration](/en-ca/payroll/help/employer/integrations/zoho-books/), you can choose to post the journal entry for the payroll transaction in Zoho Books. The transaction will be recorded under the account configured during the integration setup.

Once your bonus payroll is approved, Zoho Payroll will automatically deposit salaries into employees’ bank accounts on the scheduled pay date if you’ve set up [Direct Deposit](/en-ca/payroll/help/employer/direct-deposit/) for your organization and employees.

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### Step 3: Record Payment for the Bonus Payroll

If you’re paying employees manually via cheque, cash, or other methods, you can mark the payment as recorded on the payday.

To record payment for a bonus payroll:

1.  Go to the **Pay Runs** module and open a bonus payroll in the Payment Due status.
2.  Click **Mark as Paid** on the top right.

**Pro Tip:** To record payment for individual employees instead of recording for the payroll as a whole, click **Mark as Paid** next to the corresponding employee.

3.  In the pop-up that appears, select the **Paid Through Account** and **Payment Mode**.
4.  Enable **Send pay stub notification email to all employees** if you want to email the pay stub to your employees. Otherwise, leave it disabled.
5.  Click **Save**.

The payroll will now be marked as **Paid**, and the applicable federal and provincial taxes will be generated under the [Taxes](/en-ca/payroll/help/employer/taxes-and-forms/taxes.html) module.