Bonus time....most bang for the buck?

PrimaDonna

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MB
We like to give our techs their bonus at Thanksgiving instead of Christmas. We let them know how Thankful we are for them, and it allows them to take advantage of doing some Black Friday shopping to get the deals . Or they have the money before the holidays for shopping.

I'm aware of the tax implications for adding a bonus to a check....it's taxed at a higher rate so they get less.

Of course cash is king....but trying to figure out how to tag that in QB if we make a withdraw and give a lump sum of cash.

How are people doing that so they get the business write off, but the techs aren't loosing out by being taxed higher? Probably a question for my CPA, but I thought I'd check here first.

Thought of purchasing gift cards through the business....as we give these out to our good clients and referral sources. Would it be considered a bonus if we did that for a tech? If they wanted they could they just take the cash off the card?

Don't want to break any rules....just looking for legitimate loop holes.

How do you handle holiday bonuses?
 

Brian H

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We pay vacation pay to our employees on the anniversary date of when they started. A 20 year employee gets 4 weeks of pay and it results in an extra large paycheck at that time. Over the years a lot of them change their withholding for that one pay period.

Maybe that would work for your people?
 
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Mikey P

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Visa Gift cards

Marketing expense.

You gave them to those designers who got you a those $500 FPA sofas


According to our former ir S tax lady
 

clean image

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The biggest problem, according to my a, is your avoiding employment tax....

2nd is avoiding fed tax..

If they quit...and employment stuff.....you be on hook....
 
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PrimaDonna

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Done....

But this is MY bonus, not theirs! Finally getting pre-vac step added!

upload_2016-11-16_13-21-14.png
 
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Desk Jockey

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We usually give them out before Black Friday also. They might as well get the most bang for their buck.

Dan wants me to give them amounts compensating for their taxes so they get nice even amounts.

No matter if its hundreds or thousands, it can never be enough. Its a sizable hit and I wish we could do more but we do what we can.

You are at least subsidized by the gubbermant. If you don't give it, you'll pay a portion of it in income tax. :winky:
 

Willy P

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We usually give them out before Black Friday also. They might as well get the most bang for their buck.

Dan wants me to give them amounts compensating for their taxes so they get nice even amounts.

No matter if its hundreds or thousands, it can never be enough. Its a sizable hit and I wish we could do more but we do what we can.

You are at least subsidized by the gubbermant. If you don't give it, you'll pay a portion of it in income tax. :winky:


Richard (Scrooge) Chavez's bonus plan.....:winky:


mc-gift-card_zps0mv709ty.jpg
 

Jimmy L

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When I shook Jeffy Cross's hand years ago I was wearing a glove. I was into Michael Jackson at the time............he gave me this weird look. I pick my nose with my left hand.
 

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