Christmas Bonus 2024 Guidelines

Christmas Bonus 2024 Guidelines. This will help to prevent it being considered ‘mandatory’. There is no fundamental requirement or statutory.

When using the percentage method, employers withhold 22% for taxes on the first $1m and an additional 37% on any portion of the bonus over $1m. Employers generally can deduct the cost of bonuses paid to employees before year end, assuming they represent compensation for services rather than a gift.