What are the laws regarding the payment of bonuses?

In Mississippi, payment of bonuses is governed by wage and hour law. For non-exempt employees, bonuses must be paid at the same time and on the same terms as regular wages. That means if you are paid weekly, your bonus must also be paid on a weekly basis. Additionally, employers must pay bonuses in the same manner as regular wages, such as by cash or check. Employers must also include any bonus payments when calculating overtime wages. That means that employers must include a bonus payment when calculating the number of overtime hours an employee has worked and the rate of overtime pay. Bonuses also count as wages in Mississippi when it comes to withholding taxes. That means employers must deduct federal, state, and payroll taxes from bonuses just like they would for regular wages. In some cases, employees may be subject to a “use or lose it” clause, in which bonus payments are forfeited if the employee leaves the job before a specified date. If such a clause is included in an employment agreement, Mississippi’s wage and hour law will still govern the payment of bonuses. Finally, employers must maintain accurate records of bonus payments in accordance with Mississippi wage and hour law. This includes providing employees with written records of all bonus payments.

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What are the laws regarding the payment of bonuses?

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