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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I am far from an expert on taxes. As a company, we do bonuses (like many) but we have one employee that complains about how much tax is taken out of his bonus(es). Is there anything we or he could/should do differently? I'd just come to terms many years ago that bonuses are taxed at a higher rate and that was that. Thoughts?[/quote]Bonuses are treated as supplemental income and taxed at a flate rate of 22% by the Fed. Depending on his tax bracket he may get a refund at the end of the year or end up owing more. It all comes out in the wash at the end of the year when you do your taxes. Nothing you can do about it besides increase base salary, which is great for the individual, but not something an employer will want to do as they carry that base into the next year.[/quote]

OP here, this is how I understood it too and how I tried to explain it to him. These are performance base bonuses too (business development based), not like a flat 15% every year or whatever.[/quote]

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