Bonuses are wages if they are paid to an employee for services rendered by that employee
for his or her employer. Bonuses given by a manufacturer to a dealer's salesperson,
who meets a prescribed sales quota, whether paid directly by the manufacturer or through
the dealer, are not wages.
An automobile dealership gives a bonus to a salesperson for meeting a sales quota.
This counts as wages.
An automobile manufacturer gives a bonus to a dealership’s salesperson for meeting a sales quota. This is not
considered wages because there is no employer/employee relationship between the manufacturer
and the salesperson. (For a definition of employer/employee relationship, see RS 02101.010).
IRS Ruling 70-337