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Thread: rp and other accounting people

  1. #1
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    Default rp and other accounting people

    whats the "best" way to give staff a bonus with the least tax penalty?
    Ugh. Stupid people piss me off.

  2. #2
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    Tax it and be done with it

    Some clients will lower Fed/SC withholding for them on bonuses but can catch back up with them come tax time
    Last edited by tprice; 09-08-2022 at 11:18 AM.

  3. #3
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    Cash money
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    Only thing we need to be wearing in this country are ass whippings & condoms. That'll clear up half our issues.

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    Quote Originally Posted by tprice View Post
    Tax it and be done with it

    Some clients will lower Fed/SC withholding for them on bonuses but can catch back up with them come tax time
    run it thru payroll company and label it as a bonus?

    Quote Originally Posted by FEETDOWN View Post
    Cash money
    my first thought....
    Ugh. Stupid people piss me off.

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    Cash is king you big dummy. Now, assuming it's shown on their W2 at the end of the year, they'll still owe on it. Tell them to be happy, they made more money, now they owe more.

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    Send it to Hunter. He'll make sure the Big Guy gets his cut.

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    Quote Originally Posted by tprice View Post
    Tax it and be done with it

    Some clients will lower Fed/SC withholding for them on bonuses but can catch back up with them come tax time
    This. You try to be too nice to them and they will think you swindled them when it is time to file taxes.

    Do a SEPIRA for qualified employees, if you don't already have a plan, and let them deal with taxes when they withdraw early.

    Pay for their dental care.
    It's not enough to simply tolerate the 2nd Amendment as an antiquated inconvenience. Caring for the 2nd Amendment means fighting to restore long lost rights.

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    Buy them all visa gift cards?
    "This is My commandment, that you love one another as I have loved you." John 15:12

    "Strive for peace with everyone, and for the holiness without which no one will see the Lord." Hebrews 12:14

  10. #10
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    we have a simple ira
    and free toothbrushes

    the right thing to do is run it thru payroll and let the .gov get their cut.

    am i the only employer that thinks all the new IRS agents will make my life difficult soon enough? I dont break the rules but I sure as hell dont have receipts for every damn thing....
    Ugh. Stupid people piss me off.

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    Quote Originally Posted by 2thDoc View Post
    we have a simple ira
    and free toothbrushes

    the right thing to do is run it thru payroll and let the .gov get their cut.

    am i the only employer that thinks all the new IRS agents will make my life difficult soon enough? I dont break the rules but I sure as hell dont have receipts for every damn thing....
    You are 100% not the only one.

    I can't wait for my first visit. Mom's stuff just made it exponentially more complicated too.
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  12. #12
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    Quote Originally Posted by 2thDoc View Post
    we have a simple ira
    and free toothbrushes

    the right thing to do is run it thru payroll and let the .gov get their cut.

    am i the only employer that thinks all the new IRS agents will make my life difficult soon enough? I dont break the rules but I sure as hell dont have receipts for every damn thing....
    2th, Not knowing who does your payroll, I'd like to mention one thing. Sometimes in a bonus or gift payment situation, payroll companies have withheld at maximum rates. It was a payroll settlement issue once and I saw 31% withheld fed and 7% state. That particular person had to wait 8 months to file her return to get that deal and it was a chunk. Suggest to the payroll prep folks they withhold at standard rates, or whatever extra your employee may want. You are not being charged for this coffee shop information.
    It's not enough to simply tolerate the 2nd Amendment as an antiquated inconvenience. Caring for the 2nd Amendment means fighting to restore long lost rights.

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    Quote Originally Posted by rp View Post
    This. You try to be too nice to them and they will think you swindled them when it is time to file taxes.

    .

    Ain't that the damn truth

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    Quote Originally Posted by 2thDoc View Post
    we have a simple ira
    and free toothbrushes

    the right thing to do is run it thru payroll and let the .gov get their cut.

    am i the only employer that thinks all the new IRS agents will make my life difficult soon enough? I dont break the rules but I sure as hell dont have receipts for every damn thing....
    .

    Sent from my moto z4 using Tapatalk

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    i worked for some crooks once,

    A fake DBE getting government scdot contracts and still at it.
    they would pay a shitty per diem, then at the end of the year give a “bonus check” to the employees but it was actually the per diem they were claiming to the .gov they paid. 3/4 of the employees were hisapnic and didn’t get a “bonus check” i imagine the owners wrote themselves a nice per diem check.
    Windows Down!

  16. #16
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    put some money in an envelope and hand it to them
    best kind of bonus ever

  17. #17
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    jwilliams is offline 2th Doc's Fishing understudy
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    RP^^ is right...and it depends on how significant the bonus is...BUt with my people, I usually talk to them before writing the check and say its going to be xx,xxx.00, do you want me to take the normal amount or what for Fed & St.
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    I worked for a Fortune 20 company when Bill Clinton became President, and one of the first executive orders was to increase withholding on commissions and bonuses. Apparently, all it takes is an executive order because you are not changing the tax rate, just the withholding, which itself should be illegal IMHO. The withholding amounted to about 40% when combined with state. Not sure what the requirements are now, but that hurt until tax returns came in the following year. MG
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    Quote Originally Posted by Maggie Glover View Post
    I worked for a Fortune 20 company when Bill Clinton became President, and one of the first executive orders was to increase withholding on commissions and bonuses. Apparently, all it takes is an executive order because you are not changing the tax rate, just the withholding, which itself should be illegal IMHO. The withholding amounted to about 40% when combined with state. Not sure what the requirements are now, but that hurt until tax returns came in the following year. MG
    That's because those bonus $'s, as far as the IRS is concerned, only apply to the compensation total for that pay period. Thus, instead of, say, a $5000 normal paycheck, and you add a $10K bonus to it, you now have a $15K pay total during that two week period, which would usually kick you into a higher progressive tax rate.
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  20. #20
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    Quote Originally Posted by ecu1984 View Post
    put some money in an envelope and hand it to them
    best kind of bonus ever
    I'd do it. Maybe. It all depends on employees. They talk and if one gets pissed because one or others got more, they will call the Dept of Labor. And when the DOL is through with you, they'll call the IRS. I have seen it done. You can't just be nice anymore.

    Another scenario, someone wants you to pay in cash. You give them a 1099 and they don't file a return. The IRS runs them down and then you have to pay their taxes and penalties when they say they tell the IRS they thought you were withholding.
    Last edited by rp; 09-08-2022 at 03:16 PM.
    It's not enough to simply tolerate the 2nd Amendment as an antiquated inconvenience. Caring for the 2nd Amendment means fighting to restore long lost rights.

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