Bonus

gismo

Is it standard practice, if a bonus is paid to an EE seperate from their payroll to withhold a flat 27% on the bonus amount?

marc

I think Circular E from the IRS has withholding schedules for these types of payments. You should check it for the suggested percentages.

E Wart

E Wart
I agree with Marc about checking the circular, but yep!! the IRS wants their money. (It used to be 28% and has recently gone down. Some states have a set amount as well.)
Obviously, if an employee's tax bracket isn't this high, they get some of this money refunded to them when they file.
Ellen