BONUS - CASH??

hrinsd · December 2003

President wants to give employees a "bonus" ($50-250) in cash on Xmas Eve. I haven't been able to find a definitive answer as to whether or not it's legal to do so. I don't believe it is as it is still considered wages from the company, but I want to be able to quote specifics to him before I tell him no...and I don't want to be Scrooge either as the company is just starting to recover from the last 2 years.

Help!!

Don D · December 2003

There is nothing 'illegal' about paying wages or bonuses in cash. It's the non-reporting of it that would be illegal. He can do this if he chooses, but must show it on the books as wages.

marc · December 2003

Be careful you do not incur personal liability with respect to not reporting payments made to the EEs. If you have w-2 responsibility under your hat, you may be considered personally liable for not including the cash payment as taxable wages. Talk to your tax people. I bet they will advise reporting.

cebudragonlady · December 2003

Our Company CPA said that the IRS considers that cash payments to employees during the holidays to be taxable and must be recorded in the Payroll records.

Chari

hrinsd · December 2003

Thanks to those who responded!! We are processing through payroll (which is how I wanted to do anyways!!!)

May everyone in the forum have a safe and happy season!!

Don D · December 2003

I certainly did not mean to imply that it was OK to pay in cash and not pay taxes. I don't think that's what I said. The employer can pay wages or bonuses in cash or any other legal tender; however it must be shown in the company books as wages. And of course if the books show wages, taxes automatically follow or somebody sees a padlock.

hrinsd · December 2003

No, I knew that's what you meant, but I wanted to impress upon my boss the various liability exposures we would have by doing it his way. He doesn't like to be told no, so I try to temper my response with a way to do what he wants that's legal.

Happy holidays!

Pork · December 2003

[font size="1" color="#FF0000"]LAST EDITED ON 12-23-03 AT 02:50PM (CST)[/font][br][br]We do it every year, with the exception of this year. We missed our target in the number of Hogs placed in the market, therefore, no Christmas Bonus!!!

Ya'll eat lots more PORK this year to help make up for our losses this year 2003!

PORK

May I also suggest that we give food to every employee which we did do this year. Honey Suckel White Turkey for Thanksgiving and a Bryan Foods "Big Ass Ham" for Christmas. Both were big hits with our employees.

hrinsd · December 2003

My husband and I try very hard to support the pork market, we do quite a bit of meat smoking, and pork is by far our favorite to work with!!

Happy holidays to you!!

BONUS - CASH??

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