<prompt> Human: My girlfriends company instituted a new policy as part of their total compensation package, and I strongly believe as a former Project Manager at that company that this is entirely unfair. Im wondering if its also legal?Long story short in a botched effort to keep people form fleeing the company, instead of increasing the salaries in accordance with their meritocracy performance evaluations from last year, they are keeping salaries largely the same while issuing the increase as incremental bonuses throughout the year. This enforces the ideology of stay to get paid i.e. if you leave you, the company wont have to pay you the increased salary unless you stay around long enough to get the bonuses.1 Can a company even do this? It seems like theyre cheating their employees out of a well deserved raise.2 If bonuses are taxed differently from wages, will this cause more taxes to be taken out of my girlfriends earnings? Thanks!RedEDIT: Thanks to everyone who clarified: this is legal and bonuses are not taxed differently than wages.  <response>: 1 Yes, they can do this. Theres nothing in the law saying raises in salary are required. 2 Bonuses are not taxed differently, however the withholdings per paycheck might be affected. Adjust your year-long withholdings accordingly. 