If I want to give my employee a bonus, while I have to pay employment taxes on it as well as the employee?

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If I want to give my employee a bonus, while I have to pay employment taxes on it as well as the employee?

2006-12-18 11:35:57 · 4 answers · asked by colleen m 1 in Business & Finance ➔ Taxes ➔ Other - Taxes

4 answers

Don't treat a bonus as a gift if it is more than a token amount, the examples given are a Thanksgiving turkey or a Christmas ham. Otherwise, run the bonus through payroll. There may be a reduced withholding amount if the bonus qualifies. The payroll service will know the criteria.

2006-12-18 13:04:02 · answer #1 · answered by mattapan26 7 · 0⤊ 0⤋

Yes, it is taxed just like the normal wages.

2006-12-18 11:51:45 · answer #2 · answered by HUDDGROUP 1 · 2⤊ 0⤋

Yes, it's just like any other income, the IRS has to get their share.

2006-12-18 13:13:44 · answer #3 · answered by crazydave 7 · 0⤊ 0⤋

not if it is a gift.

2006-12-18 12:05:42 · answer #4 · answered by kaligurl1229 3 · 0⤊ 2⤋