End of Year bonus: Cash or "in check"?

[clean image]

I know it depends on amount.

If it's in check, do you "give" a little more?

Or do you feel the emotional positives of cash in hand go farther?

 

[Mikey P]

great and timely question..


Most need the write off so a check is needed.

 

[Mark Saiger]

We also do gift cards...

We get $100 gas cards (can be used for other purchases in the store too, or can get exclusive gas only cards) from our local Holiday Gas Station....


EDIT: you can also get smaller dollar amount and sometimes we will do Five $20 cards ....

 

[rjwood]

I'll take either. Thanks!

 

[PrimaDonna]

We already gave our bonuses. We give them the Wednesday before Thanksgiving with a heartfelt Thank You (we are thankful for you) card. This way, they can take advantage of the black Friday/cyber Monday sales and shop for their kids/families. We've found over the years, they need the money now to make those purchases. Waiting till Christmas makes it too late for them to use it in this way.

 

[Desk Jockey]

If it's in check, do you "give" a little more?
Or do you feel the emotional positives of cash in hand go farther?

Dan & I had that discussion a few weeks ago. He believes cash appears to be more. I told him if the net is the same why would it matter. So we decided to make the net what the cash would have been.

What I did was zero out the fed & state took the gross target divided by .9235 and that should get you where you want in net for the check.

So if you're wanting to give $250.00 net then divide it by the .9235 and you enter the check for $270.70 zero out the Fed & State and that would either be right on or a penny of two off that needs adjusting.

We usually give them out like Meg just before the Holiday but I already had an abbreviated payroll that week and just didn't care for the added hassle. I mad e them out Thursdays and we gave them out yesterday along with the pay check.

Pay roll tax is going to be a bitch Monday.

 

[Old Coastie]

I don't suppose teaching them a skill, like robbing liquor stores, would qualify as a bonus?

 

[Desk Jockey]

No but if you don't mind teaching me, I wouldn't mind a career change.

 

[Able 1]

My employee is horrible with money as far as saving.. So I worked out a deal that I would pay $300 towards his rent while on unemployment in the winter(4 or five months).. Should make things easier for him when we are slow..

 

[Scott O]

cash makes no enemies. I've only got one guy so no big deal.

 

[rjwood]

My employee is horrible with money as far as saving.. So I worked out a deal that I would pay $300 towards his rent while on unemployment in the winter(4 or five months).. Should make things easier for him when we are slow..

$300.00 each month? That's a great idea and a nice deal.

 

[rjwood]

I don't suppose teaching them a skill, like robbing liquor stores, would qualify as a bonus?

No, but I'm sure their dads might be appreciative.

 

[Able 1]

2016 is going to be a great turn for me, nothing written down.. But if I'm not $50,000 over this year it will be a failure in my eyes.. Can't wait!

 

[Russ T.]

I worked for an outfit in CO years ago. They would hand me 1K in cash each year as a holiday bonus.

Made me feel like a million bucks.

 

[Desk Jockey]

Years ago bonuses used to total over 30k but several of the employees asked if it could given to them as a raise throughout the year. It's down sizeable since then but somehow never goes away despite what was supposed to happen.

 

[mirf]

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We also do gift cards...

We get $100 gas cards (can be used for other purchases in the store too, or can get exclusive gas only cards) from our local Holiday Gas Station....


EDIT: you can also get smaller dollar amount and sometimes we will do Five $20 cards ....

But he is family Cash only

 

[mirf]

Years ago bonuses used to total over 30k but several of the employees asked if it could given to them as a raise throughout the year. It's down sizeable since then but somehow never goes away despite what was supposed to happen.

I think that may be better and I would have to hunt them down if I gave them $1000. bucks and they quit

 

[mirf]

We give checks and gift cards for a dinner at a place I clean.

 

[Papa John]

The Increases in insurance costs and government mandated employee benefits has me thinking like Mr. Scrooge this year . but I'll probably soften up b4 Xmas.
but Cash has more dramatic impact.

 

[rjwood]

End of Year bonus: Cash or "in check"?

My end of year bonus is "in check" as I have no employees.

 

[rjwood]

The Increases in insurance costs and government mandated employee benefits has me thinking like Mr. Scrooge this year . but I'll probably soften up b4 Xmas.
but Cash has more dramatic impact.

If the insurance industry wasn't trying to gouge everyone those government mandated benefits wouldn't hurt nearly as bad as they do. Hell, you wouldn't have those "government mandated benefits" if we were smart enough to support universal heath care.

Just think about all the law suits that would suddenly disappear too.

 

[clean image]

Richard,

So your claiming their cash on their w2?

I have a payroll service, so , short of me pulling out some hoops to jump through, I pay all the taxes on that cash.

And that comes of the top..

So per $100 dollar bonus CASH, cost me 32$. In tax on profit
less as I would have to pay taxes, WC, on that $100 ( around 12%I think)
(Not exact cause I would have $100 plus taxes on it to deduct)

So $100 cash equals $120 in check

So the same question ....
as an employee. ?/. As an owner?

 

[Desk Jockey]

We used just run it through as normal and it pulled everything and that's where Dan felt it loses impact with taxes being pulled.

The Fed & State taxes come from them our of what they already contributed. By year end they should be safe on what's been pulled from them over the year. They have to pay the tax either way, either seen on their check or take out of their year end contributions. It just appears like the received the full amount we intended them to have.

I'm not sure of the payroll service will do it for you but it certainly can be done.

 

[PrimaDonna]

FYI....Bonuses are taxed at a much higher rate. I remember when I used to get them in my former job (meeting payroll hours, revenue, ARs etc) and they were taxed around 40%.

I don't know why they are taxed higher, but they are. Sucked when I knew I was getting a $1k bonus on only really got about $600.

 

[Ron K]

Is anybody doing a profit sharing plan? Would or should that not be more of a win win? Or have I just revealled my true age!

 

[KevinD]

Even though bonuses are taxed at a higher percentage,
"ALL" your earned dollars are equal at tax time so you get any excess above your normal tax bracket rate back.

 

[Desk Jockey]

FYI....Bonuses are taxed at a much higher rate. I remember when I used to get them in my former job (meeting payroll hours, revenue, ARs etc) and they were taxed around 40%.

I don't know why they are taxed higher, but they are. Sucked when I knew I was getting a $1k bonus on only really got about $600.

Must be where it put you in a different text bracket. Maybe you shouldn't have made so much and the you wouldn't be taxed so much!

I consulted with our CPA and he was fine with it. Several were over 1k and he made no mention of taking more out for bonuses. His only concern was don't touch med and ss.

 

[Able 1]

If the insurance industry wasn't trying to gouge everyone those government mandated benefits wouldn't hurt nearly as bad as they do. Hell, you wouldn't have those "government mandated benefits" if we were smart enough to support universal heath care.

Just think about all the law suits that would suddenly disappear too.

Anything government gets their hands on gets too costly because of complete incompetence, and no checks and balances. Less government less cost. Let the insurance stay private and the cost will go down.. Right now insurance rates are skyrocketing and we are going to see a collapse in Obamacare(Blue cross is already out in 2017)..

Expensive Government regulations and government fees to put new medication on the market are what we should really be bitching about..

Insurance companies need to make money and health care is expensive, but why is it so expensive, Government!

If you want to see what "universal health care " looks like look to the VA. Good god these guys fought for our country, and die waiting to see a doctor (no thank you!).

 

[Able 1]

I would also rather do unemployment myself in house.. His benifits always "run out" though he doesn't take what I put in WTF!?

 

[rjwood]

If you want to see what "universal health care " looks like look to the VA. Good god these guys fought for our country, and die waiting to see a doctor (no thank you!).

That is where I get my health care, and contrary to popular belief due to propaganda coming out of the conservative media, it actually works quite well. We vets talk about it all the time when we're in for visits, how it's a shame not everyone has at least what we have.

It's kind of funny, isn't it, that we place a higher premium on public health care than we do on the lives of our military personal. I mean, we're willing to offer the benefit of security to the public by putting our young people in harms way, but we refuse to offer them health care. Seems kind of weird, doesn't it? And that appears to be because jobs are more important than health or lives.

I'll tell you why I think that is. It's because we're not really offering safety and security to the masses, we're offering it to corporations. Yes, we can say that that's important because they provide jobs, but let's at least remove the facade and call a spade a spade.