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QUESTION DETAIL
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I have been at my comapny for 10 years. As a gift, my boss gave me $10,000. He was going to buy me a car, but did not know which to buy so he is giving straight cash. Would this be taxed differently then a bonus?
ANSWER
The BIDaWIZ Team's Answer:
A cash bonus is considered supplemental income subject to federal, state and payroll taxes. Your employer should gross up the bonus to include those taxes if the intent is to provide $10,000 cash to you.
