whats the "best" way to give staff a bonus with the least tax penalty?
whats the "best" way to give staff a bonus with the least tax penalty?
Ugh. Stupid people piss me off.
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.
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"Sometimes you gotta grab the bull by the horns and the women by the tits and take charge in your life" - General Patton
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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.
Send it to Hunter. He'll make sure the Big Guy gets his cut.
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.
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
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.
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.
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!
put some money in an envelope and hand it to them
best kind of bonus ever
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
Dum Spiro Spero
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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"Keep your powder dry, Boys!" ~ George Washington
"If I understood everything I said I'd be a genius." ~ 'Unknown'
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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