If there is a payment that is specifically designated as a bonus then the employer is required to withhold according to the following rules.
Supplemental wages are wage payments to an employee
that aren't regular wages. They include, but aren't limited
to, bonuses, commissions, overtime pay, payments for
accumulated sick leave, severance pay, awards, prizes,
back pay, retroactive pay increases, and payments for
nondeductible moving expenses. Other payments subject
to the supplemental wage rules include taxable fringe
benefits and expense allowances paid under a nonaccountable
plan.
- Withhold a flat 25% (no other percentage allowed), or
- If paid with regular wages they can determine the amount of required federal withholding based on the gross amount if it is more. (a condensed version of another option)
- For more information on the employer requirements on bonus pay you can use the link here.