Bonus Election (Each time or One Time?)

[jmartin]

Plan allows for changes anytime. They have bonuses every year. Some participants may receive multiple bonuses in a given plan year. The company is setting up a new payroll system and had a question regarding the bonus election.

We know that the participant can elect to have a different amount withheld from the bonsus compared to normal pay. For those situations we have the participant complete a bonsus election form. Those that do not complete this form have the same % withheld from bonus as normal. No issue there.

Does the participant need to complete a bonus election for each bonus?

Can the participant complete a bonus election form, say 1/1/13, which would cover any bonus received for the entire 2013 plan year? The form we have does lists the plan year, so could assume it is for the entire plan year?

Could they complete a bonus election form that would cover all bonuses in the future (multiple plan years)? Would it be as simple as adding simple wording that this is for all bonuses received after this date will have "x" percent or zero, etc.?

[Bird]

I think you can do whatever you want. Deferral elections are not plan forms.

[BG5150]

Our bonus election form says something like: "take x% from my bonuses. This election will stay in place until changed."