My employees are the best. If I give them a bonus do
I have to pay contributions?
Yes. Bonuses are considered to be wages and therefore you must
pay UI contributions on these amounts. However, since a bonus
can create an artificial rise and decline in your wages, which
might cause future rates to be higher than they should, the bonus
can be optioned out.
If you would like to know more about the option process, please
contact your nearest Employment Security Tax representative.