“Amounts paid to employees as bonuses in addition to their usual compensation must be included in the employees’ income and are subject to federal income tax withholding and social security, Medicare, and FUTA taxes.”
It is best when cutting a bonus check for an employee in between regular payroll runs to contact us, provide the gross amount, and we can tell you the net amount after taxes. This way the taxes are taken care of correctly. Many times, when this doesn’t happen, we end up needing to gross up the amount in order to cover the taxes because the company is covering the employee’s taxes.
Give us a call or shoot us an email and we can let you know what to write the check for. It’s much easier and saves your company money.