The year has gone by fast, and most employees on Wall Street unfortunately will be facing a less than fully funded holiday season. It's no secret that bonuses will be down. The trading environment has been awful, dragging down earnings. We'll get some more information on this as the third-quarter reporting period gets underway. JPMorgan Chase will lead off on Wednesday.

Ever sensitive to the needs of their top performers, some banks may consider paying bonuses early this year. Banks that actually pay out in January will have to ponder the consequences of the expiration of Bush-era tax cuts, which would affect many employees. So, we might see some banks pay bonuses in 2010. Other banks may consider more tax-deferred income programs.

For someone earning $500,000--the average compensation of a Goldman Sachs employee last year--the tax hit from a reversion to a higher rate could be $200,000, not including other potential tax hikes on the horizon, CNBC notes. The higher cap gains rate would also hit some execs.

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- here's the article

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