We were asked by upper management if the recent bonuses paid were taxed, and they were as per normal tax obligation using method a.
We were then told that that bonuses should either not be taxed or should be gross up so that the net payment is equal to what the employee was told they would be paid.
As bonuses are income, we will keep withholding tax, but with grossing up a bonus, what are the consequences to this.
I am aware of the difficulties of calcing this on a person to person basis, but is there any other issues that I might be unaware of?
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269 views
1 replies