2006-11-01 10:26:00 · 4 answers · asked by lore l 1 in Business & Finance ➔ Taxes ➔ United States
Certainly, it is a business expense just like salary, etc.
2006-11-01 10:44:08 · answer #1 · answered by kearneyconsulting 6 · 0⤊ 0⤋
Bonuses are treated the same as wages and SS/Med tax must be paid and the amount included on the W-2. If the employer wishes to cover the employee's portion of this, than that amount also becomes taxable. If the bonus is in most any other form than dollars, ( ie: trip, gifts card, ect...), the value of the item given is included as compensation just as if it was money. So the answer is yes, it is deductible to the employer. On the other hand, if an employer simply wants to give the employee a gift and not deduct it as a business expense, the employee may get away with not claiming it on their return.
2006-11-02 16:34:43 · answer #2 · answered by Great Tax Info 2 · 0⤊ 0⤋
Yes, a holiday bonus is a deduction for the employer.
However, if the bonus is cash, or a cash equivilent (such as gift certificates or coupons), then the bonus is also subject to payroll taxes and withholding.
2006-11-01 18:32:01 · answer #3 · answered by tax_black_belt 2 · 1⤊ 0⤋
Yes and income to you
2006-11-02 06:33:26 · answer #4 · answered by waggy_33 6 · 0⤊ 0⤋