Avoiding taxes on employee bonuses

[chrispy]

Would it be possible for a private company to purchase stock in a publicly traded company and give it to an employee as a bonus to avoid income taxes? Would that still count as income for the employee?

[LC]

Absolutely counts as income

 

Non-Cash Bonuses

If the bonus is not cash, but a trip or goods, you have to report the fair market value. The employer should report this on the W-2. It will be included in that box with wages and other compensation and not reported separately. If the bonus is in the form of a stock option, for instance, the employer should show the fair market value of the stock at the time of the bonus.