paid a bonus to an employee on a seperate cheque , grossed-up the amount and all deductions were calculated and employee received full amount of the bonus. Subsequent payroll cheque showns a significant increase in taxes. How should I have handled this to eliminate this increase and have employee receive normal pay.

Hi there:  The tax deduction should be based on the amount of the gross entered into payroll, not on a previous amount paid.  Did you set an amount in the bonus section so that it is appearing again on the next pay?  If you have only the amount of gross that should be there for the next paycheque then the tax will not deduct any more than is required for that amount of gross.  Have you made sure that the "calculate automatically" button is turned on?   Rita Deering

Rita. thanks for the reply.

the auto calculate button is on. the gross amount on the payroll cheque is correct and is the only amount shown. the fed and provincial taxes and the pension amounts are different from the previous payroll cheque. the only change from the prior payroll has been the bonus cheque.

Hi Rita

Mystery solved. somehow pay period was changed to 52 weeks instead of 26. Thanks!

Hi again:  Now that really is a mystery.  Never would have thought of that but now I know.  Thanks for sharing that you did solve the problem.  Rita