Employee bonuses

[mikewhite85]

So apparently I am supposed to pay worker's comp on Christmas bonuses.

Climbers are 40% and groundies are 16%. I was hoping it might be possible that I can put both in the sales class for their bonuses which would be a lot cheaper...

OR just give them cash. No risk in that if you call it a Christmas gift? Only thing is I wouldn't be able to write it off. What do you guys do? Comp already kills me every month. The thought of having to pay it on bonuses is ridiculous. Wondering if it is worth the tax benefit of being able to write it off.

 

[Sapo_feo]

So apparently I am supposed to pay worker's comp on Christmas bonuses.

Climbers are 40% and groundies are 16%. I was hoping it might be possible that I can put both in the sales class for their bonuses which would be a lot cheaper... OR just give them cash. No risk in that if you call it a Christmas gift? Only thing is I wouldn't be able to write it off. What do you guys do? Comp already kills me every month. The thought of having to pay it on bonuses is ridiculous. Wondering if it is worth the tax benefit of being able to write it off.

Back before Oregon went nuts on the tax code I would give pre-paid gift cards. I'd have the guy's name stamped on the card with the company logo. No taxes to the employee and a promotional write-off for me. There was no cost for the cards through amex and I could refill them anytime I had reason to. Not sure how it works where you are but if I was still in it today I could give cards tax free if I filed it under "asset redistribution" but lost the promotion exemption.

 

[mikewhite85]

That's a good idea. I will look into that thanks.

Mike