I find large interest free loans useful.

ahh · on Dec 28, 2016

I don't hate this (and it's why I don't pay quarterlies--also, I tend to generate enough deductions to be okay.)

But it's absolutely not correct that paying people with bonuses lowers their effective tax rate.

vostok · on Dec 28, 2016

You will have to pay penalties if you underpaid over the course of the year. This makes it not interest free.

Retric · on Dec 28, 2016

There are plenty of games you can play with withholdings. EX: As long as you witholdings are enough to pay last years taxes or 90% of this years you are good.

Or if your bonus is in January you can have a higher witholdings from salary and the default 25% from the bonus. Just balance it by the end of the year.

But that's just simple stuff, there are also other benefits to the company.