What If: I Need to Pay Specific Amounts as a Payroll Holiday Bonus?

by

by

Comments (1)

Comment Feed

Federal/State withholding

I love how easy this feature is to use. We only use it for very small bonuses, say under $200. Anything higher involves a discussion with the employer about supplemental tax witholding rules.
The only issue I see with the gross up feature is the missing federal and state witholdings. When the bonus is on its own check and not included with regular wages, the federal withholding should be 25% and in GA 6%. While I agree with the argument that these % are too high, it protects the employee from having a tax bill at year end. In a gross up situation, the employer ends up paying these taxes for the employee too, which most are not willing to do. At a minimum, Intuit should add the ability to enter a desired withholding % or no % to their gross up feature.

In this example, the system is looking at the employee's regular tax table. The calculation might be $500 for a semi-weekly payroll x 26 weeks which is not enough wages for withholding, hense the zeros.

Sara Laidlaw 240 days ago

a small ad separator
Click to Subscribe
a small ad separator
a small ad separator
a small ad separator
a small ad separator