Are employers by law supposed to send bonus checks to the state for collection?
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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
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 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.
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