James Fleming, post: 404338, member: 136 wrote: 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
I went with my accountant's advice - You don't give these as an "employer" to an "employee."
Jim in AZ, post: 404378, member: 249 wrote: You don't give these as an "employer" to an "employee."
If a corporation disperses cash it is either from profits or dividends, both of which cost the employer more in taxes than wages. "Gifts" considered "De Minimus" by the IRS are under $100.
https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits
Even gift cards to employees are subject to payroll and wage taxes.
paden cash, post: 404380, member: 20 wrote: If a corporation disperses cash it is either from profits or dividends, both of which cost the employer more in taxes than wages. "Gifts" considered "De Minimus" by the IRS are under $100.
https://www.irs.gov/government-entities/federal-state-local-governments/de-minimis-fringe-benefits
Even gift cards to employees are subject to payroll and wage taxes.
Only if reported...
If I want to give someone something it's no one else's damn business - IRS included.
My best Christmas bonus was the owner telling me what a bad year the company had, then showing around pictures of his new 40 foot cat boat he sails around the west coast of Florida. I was working for a different company before March.
Jethro, post: 404445, member: 7322 wrote: My best Christmas bonus was the owner telling me what a bad year the company had, then showing around pictures of his new 40 foot cat boat he sails around the west coast of Florida. I was working for a different company before March.
My launch into self-employment almost 24 years ago was precipitated by a similar incident. I didn't wait until March, though; we negotiated for a month, but when we weren't able to come to terms I said "Adios!" at the end of January.
I recently started a new job, and being the new guy, when the boss walked around handing out Christmas bonuses, all I got was a "Merry Christmas". But I'm not complaining because I really didn't expect a bonus this year, and I still got a gift card for a turkey at Thanksgiving and another one for Christmas. The benefit package at my new job has been good, and they've done everything they said they would. They also gave a nice Christmas party for the employees. Next year will probably be a little different, as far as the bonus is concerned.
C Billingsley, post: 404667, member: 1965 wrote: when the boss walked around handing out Christmas bonuses
THAT was not elegant.
Boss Man should have given those bonuses in Private... it does not take much time and is more of an incentive
(and less hurtful to those who got nothing)
Anybody that has fruitcake, going to waste... Send it to me.
I have never had a bad one yet...
C Billingsley, post: 404667, member: 1965 wrote: I recently started a new job, and being the new guy, when the boss walked around handing out Christmas bonuses, all I got was a "Merry Christmas". But I'm not complaining because I really didn't expect a bonus this year, and I still got a gift card for a turkey at Thanksgiving and another one for Christmas. The benefit package at my new job has been good, and they've done everything they said they would. They also gave a nice Christmas party for the employees. Next year will probably be a little different, as far as the bonus is concerned.
I dunno. As an owner, I think I would have given something.
Good years = 1 month salary. Bad Years = 2 weeks salary. Also in those bad years, that meant someone had to make up the shortfall and it was typically me and dad. 🙂
"I dunno. As an owner, I think I would have given something."
Really? Well then, send me a bonus via mail please.
You're alright Joe....
Jon Collins, post: 404296, member: 11135 wrote: 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.
This is an important point. Is the bonus a gift, a merit award, or is it a manner of profit sharing?
Employers, take note:
It is not necessarily the size of the check; the presentation can make a huge difference as well.
Many years ago I started work for a company in Idaho. The thing that struck me about the company was not the size of the bonus, which was huge by my previous and future experiences, but the way they were distributed.
A bus arrived, everyone rode the bus to a local restaurant, and one by one the owner called everyone's name. We walked up individually, were given a handshake, a genuine hug/pat on the back, a heartfelt thank you with a handwritten card in an envelope with a check, and then a few personal words from the owner in your ear. I can remember that as Jack (the owner) handed out these bonus checks he had tears pouring down his cheeks. He was so incredibly proud of the company and every employee. It was totally genuine, there was not a dry eye in the building.
My first bonus check was 4 week's pay (same as everyone else) and I had only worked there two weeks. I still feel guilty about it. When I later asked Jack to allow me to return the check as I did not deserve it, I was told that the bonus was for the work I was going to do in the future; not the work I had done in the past.
Needless to say, I worked my ass off and tried to earn the respect that Jack offered me and all his employees. I am a much better person for knowing him. I will not ever forget him or the love that he had for his employee partners and his company.
Of course, if anyone had a medical emergency or family issue, the company was there for them. Kids were sent on company scholarships to college when they deserved it and earned good grades. The company business summary and performance was shared weekly with all employees. There was never a concern about giving out too much information. Health insurance benefits were excellent.
If they got a big order, there was not a question of if the work could be completed. This company had a workforce that rocked. They could complete any assignment as a team. The janitor would come in the morning and work like crazy to do his cleaning rounds, then he would go back to the assembly line and help where ever he was needed.
No one ever left that I know of. They never advertised job openings as they encouraged the hiring of family members with recommendations.
The company prospered and Jack made plenty of money. I like to think that he was more successful by being overly generous than he could have ever been running the company any other way.
I have worked at plenty of places where the company really hated the employees and it was reciprocated. I have worked at places with lots of politics and back stabbing. I have worked at places that I was trying to get out of the day I started. I work around companies today where 25% of the employees are 'let-go' every year as a matter of practice. I have never worked at another company that was as successful and honorable as Jack's place.
My respect for Jack started the day that I got that first undeserved bonus and figured out that I was working at a team, not a company.
Employers, you too could be the role model for your employees that Jack was for me.
M
Beer Legs, post: 404805, member: 33 wrote: "I dunno. As an owner, I think I would have given something."
Really? Well then, send me a bonus via mail please.
You're alright Joe....
Just the way Pop trained me. 🙂
