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Accounting, Payroll & Pension Issues/Bonuses
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Question
I am being told that if your bonus is under $200.00 then it can go on your regular check. Anything over $200.00 must be a seperate check and be taxed at the bonus rate? Is this true?
What the law says is that the company has the option to either add the bonus to the regular check or to pay it on a separate check. No amounts are specified.
The option is at the companies choice, they can do it either way and they can make the decision which way they wish to pay it.
If the amounts are listed separately as a bonus they should be paid at the supplemental rate.
Whatever the company policy is than that is the way it needs to be done. If your company policy is that anything over 200 is taxes at the supplemental rate than company policy should be followed.
Shirley
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Answers by Expert:
Shirley McAllister, CPP, PHR
Expertise
I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.
Experience
25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.
Organizations
SHRM, APA, I.O.M.A.
Publications
I.O.M.A. and BNA
Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration.
Boise State University Human Resource Certification
Awards and Honors
APA Hotline Citation of Merit for last 8 years.
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