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Quarterly Safety Bonus Payments

  • Friday, November 9, 2012
  • Daniel Lamont
As communicated via blog earlier this week and via email to all managers a few weeks ago, the quarterly safety bonus payments to our drivers changed to a direct deposit process this week and are included in the drivers' pay today. There has been some concern raised over the tax effect of including this in with the regular paycheck/direct deposit vs. the tax effect when we were issuing the bonus checks separately. Per IRS Publication 15 on bonus payments, any type of bonus payment, which would of course include safety bonus checks, must either be taxed a flat 25% or, alternatively, must be included with regular pay which would be taxed at the normal tax bracket rate.

As you are already aware, fuel bonus payments have been included in with the drivers' regular paychecks for some time now so the way we are handling the safety bonus payments is now consistent with that process and places FirstFleet in full compliance with IRS regulations going forward.

If you have any questions or concerns about this, feel free to reach out to our Payroll Department using the contact form.
 

 

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