Are employers by law supposed to send bonus checks to the state for collection?

UPDATED: Oct 1, 2022

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Are employers by law supposed to send bonus checks to the state for collection?

In our new work contract, we received a bonus of $1,500 for being maxed out on

pay. however, my employer says by law they have to send bonus checks to state before we can get it. Is this true?

Asked on September 13, 2018 under Employment Labor Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

They have to send any withholding (generally at a higher than usual amount for bonuses) to IRS and state tax authorities, but do not need to send the check itself to the state--at least as a general matter. If this employer had violated some labor or tax law previously and as part of the settlement of that case, agreed or been ordered to send checks to the state for review first, they'd have to do that; and if you are subject to tax or other wage garnishment, they might need to send it to the state; but not simply as a general matter.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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