Highlighting News, Trends and Best Practices in Employee Benefits

Company Holiday Bonuses: Could Tax Burdens Be Wrapped Into Them?

Posted by Ironwood Benefits Advisory & Consulting Services on Jan 5, 2018 4:16:30 PM

December brings many things to look forward to each year, and for many employees, excitement in December bubbles around highly anticipated holiday bonuses.  To employers, it is a way to show employees how much their work is appreciated and how they are valued by the company.  To employees, it is a way to wrap the year up on a positive note, with a little extra “green” lining their pockets to either spend on themselves or on loved ones.  But how are these bonuses viewed in the eyes of the IRS?  Both employers and employees need to make sure they are clear on if and how these bonuses can be taxed so they know how this gesture of generosity will have an affect on their workforce and bottom line. 

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Topics: benefits, Bonus, Cash, Taxes, Gifts