Ok, so box 14 was used wrong for several companies Ive seen then.... ADP is all over me because I reported the bonuses to them today after the fact and didnt use their "quickcalc"to take taxes out. I had exactly 5 minutes pre-notice this was happening and we cut the bonus checks in-house. The employer is not going to be very happy having to gross up these bonuses... I dont see why the employer cant pay the taxes due on their end to ADP and the employees will be taxed on them when their year end taxes are processes. The gross amount being added to box 1 without taxes being added to the other boxes from it. The IRS still gets their taxes off the amount that way dont they? Ive also seen employers give out 1099Misc. for bonuses but we already know thats incorrect... I just dont think this is such a big deal to fix and I dont think it has to all fall on the employer to pay these taxes now.
