Yes. I think the IRS allows a standard percentage to be applied when a bonus is paid separately from regular payroll. And the payroll system (we used ADP at the time) was used both because it was all set up for direct deposit, and because the withheld amounts rolled nicely into year-end totals already established on the system.
We also happen to have a flat rate state income tax here in Massachusetts, so 5% was withheld there.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8