My company wants to pay out a small bonus for perfect attendance. What is the dollar amount you can give with out having to withhold taxes?
2007-07-18 04:09:32 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Ok, what if it is like a gift card from Walmart, would that have to be reported to the IRS?
2007-07-18 07:30:38 · update #1
0.00
At a minimum, any pay would have to at least withhold social security and medicare.
If they want the net to be a certain amount, they should look into "Grossing Up" the pay.
2007-07-18 04:47:20 · answer #1 · answered by Wayne Z 7 · 2⤊ 0⤋
$1.99.
Bonuses and other irregular payments are withheld at the statutory rate of 25%. Any amount that calculates to less than 50¢ is ignored, therefore a bonus payment would have to be less than $2 for no tax to be legally withheld.
2007-07-18 05:05:44 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 1⤋