Consistency is pretty important. I remember getting the same for several years, then much less "not a profitable year" when it sure appeared to be a Very profitable year (lots of new fancy non essential equipment).
I really like the idea of extra paid time off, even if it is extra vacation time credit.
we week we were paying Aguinaldo and I asked "would you like cash instead of time" (for Vacation pay) and it was Unambitious, time off with pay.
My first 6 years I worked for a local guy and bonuses ranged between $200 and $1000 depending on how good a year it was. Then I spent 11 years with DOT and as someone said up the thread, you got your salary and benefits and nothing else. Then I went to a large firm in 2007, we had a big fancy party at a nice hotel conference center, got a 32" flat screen and a $1000 cash. The bottom fell out in 2008 and we got a potluck lunch and a $25 gift card to Walmart each year until I left in 2014. Now its just me, but I get to give Uncle SAM his bonus after Christmas.
paden cash, post: 347595, member: 20 wrote: so if they get a $1000 Christmas bonus, that's what the check is written for. It drives my CPA crazy to have to "back into" the gross amounts.
There's got to be a math formula there somewhere...
RADAR, post: 404277, member: 413 wrote: There's got to be a math formula there somewhere...
[SARCASM]Probably involves calculus [/SARCASM]
By the time you plug in all the variables to account for the differences between employees in withholding and such, it's probably easier to go low tech. I'd start with a number larger than the bonus check, run it through the payroll system, evaluate the result, lather rinse and repeat until I got the right answer......probably why Paden's accountant hates him. :grinning:
Depends on the company and the company management style and profitability. My first 15 years we got no bonus at all, this was a small less than 10 person firm and the most likely root cause was the over spending wife of the owner. I finally got a bonus in 2007 and it was around 1 week pay if i recall, it was the only bonus i recieved at that company which was much bigger than the first one i mentioned. In my current occupation things are much more regimented and are all based on a 'leftover' pool of money based on the % of profits. This pool is dispersed to the employees based on a complex system of sitting in a room with all the managers and going down the list until the money is gone. The amounts rise and fall with profit, as they should.
I'm solo so the bonus is what my wife thinks I deserve, but I'm reminded of last year when my very best client made it clear I could bump up one of my invoices to give myself a bonus. (I didn't do it.)
$3000 party chiefs (2)
$1500 I-man (1)
$750 rodman (1)
And week off with pay between Christmas & New Year
It may vary depending on the year but that's what we try to do.
We also give a mid year performance bonus. If we are having a good year.
Of course we expect a lot out our employees!!
Ron Lang, post: 404295, member: 6445 wrote: $3000 party chiefs (2)
$1500 I-man (1)
$750 rodman (1)
And week off with pay between Christmas & New YearIt may vary depending on the year but that's what we try to do.
We also give a mid year performance bonus. If we are having a good year.
Of course we expect a lot out our employees!!
Love to work for you.
for years at mom n pop 15 man eng firms us grunts got 500 pre tax. now I work for 350 person corp, 500 is the usual but last year I got 2500. I assumed because I passed PS and stepped up to project management, then this year I got 500. I'm stumped. but I will say that it doesn't help next year's motivation.
That being said we are given full family paid health care (with no deductible ) 4% into 401k, then a 6% LS into 4o1k each year as profit sharing. so the cash bonus isnt important despite my hurt feelings.
Bruce Small, post: 404292, member: 1201 wrote: I'm solo so the bonus is what my wife thinks I deserve, but I'm reminded of last year when my very best client made it clear I could bump up one of my invoices to give myself a bonus. (I didn't do it.)
When I used to do private work I had a client ask for a lot Survey and he said I understand it'll be $X,XXX which was about twice what I was thinking, I didn't argue with him.
My bonus this year was an email from a Chief (gold badge-big deal in the fire service) to my boss thanking him for my hard work and "great attitude" on an accident investigation. That felt really good.
Jon Collins, post: 404296, member: 11135 wrote: ...full family paid health care (with no deductible )...
Holy crap. That's 5k- minimum- over a year's time, in and of itself.
What Ron mentioned is in line with what I was doing.
Jon Collins, post: 404296, member: 11135 wrote: Love to work for you.
for years at mom n pop 15 man eng firms us grunts got 500 pre tax. now I work for 350 person corp, 500 is the usual but last year I got 2500. I assumed because I passed PS and stepped up to project management, then this year I got 500. I'm stumped. but I will say that it doesn't help next year's motivation.
That being said we are given full family paid health care (with no deductible ) 4% into 401k, then a 6% LS into 4o1k each year as profit sharing. so the cash bonus isnt important despite my hurt feelings.
We are a 7 person company, we do pay 100% health ins for the employee but no 401. Used to offer 401 but employees didn't sign up and we were owner heavy. Chiefs drive trucks home. I feel like we offer competitive wages for our area especially given we pay ins. Before the great recession we were 25 strong doing about 1.2 a year now we run lean and doing about 70% of before...at least this year. But we expect performance!!!! Bottom line.
We have a select client base. Of developers, engineers and contractors and have been very fortunate to maintain their workloads with our personnel.
Ron Lang, post: 404302, member: 6445 wrote: We are a 7 person company, we do pay 100% health ins for the employee but no 401. Used to offer 401 but employees didn't sign up and we were owner heavy. Chiefs drive trucks home. I feel like we offer competitive wages for our area especially given we pay ins. Before the great recession we were 25 strong doing about 1.2 a year now we run lean and doing about 70% of before...at least this year. But we expect performance!!!! Bottom line.
We have a select client base. Of developers, engineers and contractors and have been very fortunate to maintain their workloads with our personnel.
We had a great year and were able to invest a great deal in the company...new C3D, New DC'S, RTK, & TRUCKS. All of which were greatly needed. In the process of buying an office. Hope the economy keeps growing!
Mark Mayer, post: 347855, member: 424 wrote: My family owns a Subway store, and we will not take any bills larger than a $20. For one thing, we just don't want to have a lot of cash around that invites robbery. For another, and more importantly, on a couple of occasions we have been stuck with "washed" $20 bills. Person bleaches the ink off of a single, then photo copies a $20 onto the paper. They are extremely convincing bills. The perp will pay for a $2 drink with such a bill and walk off with $18 of real money. It's just too easy to counterfeit. Accepting larger bills just increases the motivation, and the risk.
Its' also much harder for our staff to steal debit card transactions from the till.
You ever been to Milford, CT?
Joe the Surveyor, post: 404306, member: 118 wrote: You ever been to Milford, CT?
I have not. My wife and adult son spent 2 weeks there a few years ago. Also, I have a sister-in-law in Durham, Ct.
RADAR, post: 404277, member: 413 wrote: There's got to be a math formula there somewhere...
For an employee the "math formula" would be simple: file a new W-4 in mid-December claiming maximum withholding, then file another in early January reverting to the prior withholding.
Mark Mayer, post: 404308, member: 424 wrote: I have not. My wife and adult son spent 2 weeks there a few years ago. Also, I have a sister-in-law in Durham, Ct.
Well, if you ever find yourself at Subway headquarters, I live right down the street. First round of your favorite beverage is on me.
I've always felt that bonuses are just that a "bonus" an never counted on one. The times I've been in a position to help determine amounts, it was always based on one's performance. If you have 2 people that make roughly the same amount, but one does more for you, why should they get the same amount as someone who does a little less? If possible I think it's best to give bonuses when the work merits it and not just at the end of the year. That way people know good work is noticed and rewarded.
Jim Frame, post: 404311, member: 10 wrote: For an employee the "math formula" would be simple: file a new W-4 in mid-December claiming maximum withholding, then file another in early January reverting to the prior withholding.
There's really no math formula required. These are gifts, which are not subject to taxation...
Jim in AZ, post: 404334, member: 249 wrote: There's really no math formula required. These are gifts, which are not subject to taxation...
Cash and non cash "gifts" from an employer to an employee are always taxable
http://pwbcpas.com/blog/2015/05/22/giving-gifts-to-employees-irs-wants-its-share/
http://www.cjeffersoncpa.com/smbizacctg/gifts-employees-taxable-income/
The Internal Revenue Code (26 CFR 1.132-6(c) ) states ÛÏthe provision of any cash fringe benefits is never excludable under section 132(a) as a de minimis fringe benefitÛ. The code goes on to state cash equivalent items are to be treated like cash. Some examples of cash equivalent items include prepaid cards, gift certificates, and gift cards.
http://practice.findlaw.com/human-resources/tax-rules-of-employee-gifts-and-company-parties.html
exbert, post: 347561, member: 6143 wrote: When my dad ran things, he would hook us up, but I think he was too generous.
My Dad passed in 2003. I find myself trying harder every day to be like him. If yours is still around, get his take on it and you may get some good advice.
