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Cash bonuses based on ‘performance’ are tax deductable, so just another way of corporations to reduce tax liability.
by oceanswave 6y ago
Cash bonuses based on ‘performance’ are tax deductable, so just another way of corporations to reduce tax liability.
- gruez 6y ago>Cash bonuses based on ‘performance’ are tax deductable AFAIK cash bonuses aren't treated any differently than any other business expense. Paying a $1M bonus to an employee or to a client (because you lost their $1M) is the same from a tax point of view.
- octoberfranklin 6y agoDude, all employee compensation is deductible. Payroll is many businesses' main expense. The company doesn't pay tax on those dollars, but then the employee does.
- thaumasiotes 6y ago> The company doesn't pay tax on those dollars, but then the employee does. US payroll taxes are notionally assessed half on the company and half on the employee.
- srtjstjsj 6y agoOnly up to about $10k/person max payroll tax.
- octoberfranklin 6y agoThat's payroll tax, not income tax.