Benefits are things you've already paid on the employee's behalf, that the employee has to pay income tax on.

To pay a bonus, it has to be an income type item.

Thanks for your response. If I make the Bonus an income type, how do I make sure it show up on their

T4 in box 40 and in their REL-1 stubs?

Make sure 'Calc Tax', and 'Calc Tax (Que)', as well as any other appropriate items are checked.

I believe that all income goes into the regular employment income boxes on slips, unless you designate it as something else at the time you are printing and filing the slips from Sage 50.

The program help is fairly good on explaining how to file the employee income returns.

For the Record of Employment to be correct, if the bonus is not based on hours, then you would just put in a dollar amount, no hours.  It's still insurable earnings, just not part of the calculation for how many hours the employee worked.

Thanks, just to make sure I understood everything you told me :

1. define the Bonus as an Income type  (checking all the appropriate columns such as" Calc Tax"  etc..,)

2. enter the 500$ as Bonus on the paycheck.

3.  manually add the amount of the bonus on the T4 so that they appear on Box 40.