End of Year bonus: Cash or "in check"?

[Hoody]

You'd want to run this by your CPA but... I've heard that you can give your employees pre-paid gift cards for bonuses and can still write the full value of them off without having to do the whole payroll thing with it.

Anyone know how true that is or have done something similar?

 

[Desk Jockey]

Chances are that will fly until you get audited. Then anything over $50.00 they/you'll be responsible for the tax on.

 

[rjwood]

I suppose, theoretically speaking, (don't ever do this, of course) if one were to be paid cash by customers one could save that up to use for bonuses. Again, not that anyone has or should do that. Just rhetorical.

 

[PrimaDonna]

've heard that you can give your employees pre-paid gift cards for bonuses and can still write the full value of them off without having to do the whole payroll thing with it.

Chances are that will fly until you get audited. Then anything over $50.00 they/you'll be responsible for the tax on.

Unless those gift cards were for a promo/give away or customer thank you for referrals. We give those kinds of things out for that purpose. But this thread now got me thinking....how would your CPA or the IRS know if you gave it as a prize contest, to a client for a referral, as your BNI door prize or to your employee? (Unless you told them of course). Not saying this is a good idea or should be done, but I would think there are businesses out there that use this type of a loophole.

 

[Mark Saiger]

Unless those gift cards were for a promo/give away or customer thank you for referrals. We give those kinds of things out for that purpose. But this thread now got me thinking....how would your CPA or the IRS know if you gave it as a prize contest, to a client for a referral, as your BNI door prize or to your employee? (Unless you told them of course). Not saying this is a good idea or should be done, but I would think there are businesses out there that use this type of a loophole.

 

[Desk Jockey]

Unless those gift cards were for a promo/give away or customer thank you for referrals. We give those kinds of things out for that purpose. But this thread now got me thinking....how would your CPA or the IRS know if you gave it as a prize contest, to a client for a referral, as your BNI door prize or to your employee? (Unless you told them of course). Not saying this is a good idea or should be done, but I would think there are businesses out there that use this type of a loophole.

Let me know whut prison you're at and I'll be sure to write you.

 

[GeneMiller]

I pay all the taxes. The longer they stay the bigger their bonus will be. Everybody so far really likes it. They don't get it until next year after they file obliviously but money is money.

Gene

 

[WillS]

We did Visa gift cards this year. Now we can expense the 3.49$ hallmark Christmas cards to right? Dollar store just had shitty cards.

 

[Mikey P]

same here..


cashier shit a brick when I tossed 8 $500 cards on the counter.


Apparently I was her first.