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You may want to specify what country your in. In the US a bonus is taxed like any other salary (call it whatever...it is what it is) and all standard withholding and such are applicable. There is no luxury tax on earnings/wages. (There is one on the purchase (as an excise or sales tax) on some very expensive goods...likes boats, planes, cars).

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Q: Can an employer take the luxury tax out of a bonus for an employee under the amount of 1000.00?
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