We give out bonus checks around Christmas every year, but someone just told me that we are supposed to report it to our payroll service and the amount is supposed to be taxed. Does anyone know if this is true?
2007-12-13 06:33:18 · 5 answers · asked by PaganBeauty 1 in Business & Finance ➔ Taxes ➔ United States
Yes, yes, yes. It's money, it's compensation, it gets taxed like everything else.
Fica/MC and Federal/State taxes. The Federal/State taxes may be at a flat percentage (say 25% for federal).
2007-12-13 06:38:01 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes, bonus checks are taxed just like any other form of income is taxed.
2007-12-13 07:10:31 · answer #2 · answered by acermill 7 · 0⤊ 0⤋
Yes, all income is subject to tax, both state and federal. It needs to be reported to your payroll company.
2007-12-13 06:39:35 · answer #3 · answered by jwishz 7 · 1⤊ 0⤋
Generally, yes they are taxed. It is income, just like your regular paycheck. Might be a couple rare instances where it is not, but it will be included on your W-2, so yes- taxable!
2007-12-13 06:37:26 · answer #4 · answered by KD 5 · 1⤊ 0⤋
It's taxed in California as everywhere else in the country.
As usual "someone" was wrong.
2007-12-13 06:51:01 · answer #5 · answered by Wayne Z 7 · 0⤊ 3⤋