Tag: bonuses

The following question recently came from one of our clients requesting our assistance to better understand and manage this issue. Question:  My boss would like to pay an independent contractor a “bonus”.  I am concerned about using the term “bonus” within the IRS definitions of the independent contractor classification. Is there any way we can…

Question: Does the Medicare tax increase wage limit of $200,000 include bonuses? Answer: Yes.  The calculation of wages for purposes of withholding additional Medicare tax is the same way that it calculates wages for withholding the existing Medicare tax.  Wages subject to federal employment taxes generally include all pay you give to an employee for…