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Here's a wrinkle that may not occur to anyone, especially if the organization doesn't do bonuses regularly. Bonuses are subject to payroll taxes and withholding, the same as any other compensation. Speaking from experience here, if the employee receives a check for the full amount of the bonus, it can create a bit of a mess on the payroll end because adjustments need to be made later. For most payroll systems, it works better to inform the employee of the amount of the bonus and the date on which the bonus, less payroll deductions, will show up in the paycheck.

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