Ace Payroll Blog
Dec 01 2014
Year End and Holiday Bonuses
By: Clare Sorg
Posted in: Payroll Education
As the holiday season is upon us, employers may begin to think about year-end and holiday bonuses for their employees. Below are some items to consider and discuss with your payroll representative.
Please consult with your accountant on the preferred method in which to tax the bonus checks. Using the standard payroll tax tables may not be applicable. The following are some options that may be recommended.
Decide if voluntary deductions should come out of the bonus pay check, i.e. 401k, SIMPLE, Medical plan, etc.
Do you want the employees to receive the bonus as a live pay check or paid directly into their bank account on record. Many of our clients prefer to hand out the live checks to their employees.
Your payroll representative will be more than happy to assist you with any questions and look forward to hearing from you.