QB Issue Resolution:

If you want to give out a net amount you have to start with a higher gross and fiddle with the amount to factor taxes. Bonus pay is subject to FWT, SS, Medicare, FUTA, SUTA, state and local income.

You can cut a check without taking out taxes but you would still have to submit their portion of taxes as well as yours.

And the IRS requires a flat 25% withholding on bonus pay, which few employers probably comply with, instead allowing recalculate on of tax as if the pay with bonus were to be the annualized rate- meaning possibly more tax is withheld than required by law in some cases, and less in others.

Resolution for Issue 'How to run bonus payroll without tax withholding?' available: Yes (Solved).
Source: Intuit Community forum.

How to run bonus payroll without tax withholding?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

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