ES Tax FAQs
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 ES Tax representative.