QUESTION
Can employer issue bonus checks to an employee who owes back taxes to IRS aside from the employee’s paycheck?
Asked on Apr 29th, 2014 on Bankruptcy - Washington
More details to this question:
If an employee owes IRS back taxes totaling of approximately 250K and has not filed in a couple of years, can the employer issue bonus checks to this employee aside from his paycheck?
7 ANSWERS
I know of no reason why the employer may not do this. Employee not filing the tax returns is not the employer's problem.
Answered on May 05th, 2014 at 8:59 AM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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Sure, in most instances. But I would contact a tax accountant. I suspect that the employer must not have received a lien on the amounts due the employee and must withhold normal withholding or 10% whichever is greater.
Answered on May 02nd, 2014 at 6:58 PM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Depends if the IRS has issued a garnishment order to the employer.
Answered on May 02nd, 2014 at 6:58 PM
Arbitration Attorney serving Irvine, CA
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Law Office of Linda K. Frieder
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Why not. Are you referring to attached wages?
Answered on May 02nd, 2014 at 6:58 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Sure, but the employer will have to pay withholding on the bonus and the employee will have to pay taxes on the bonus.
Answered on May 02nd, 2014 at 6:58 PM
Bankruptcy Attorney serving Seattle, WA
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The Law Office of Marc S. Stern
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Is there an IRS Levy on the employer? If yes, the answer is no. If not, why is it any different from a paycheck?
Answered on May 02nd, 2014 at 6:58 PM
Of course, the employee will pay income taxes on the bonus in the year paid.
Answered on May 02nd, 2014 at 6:58 PM