Author Topic: Avoiding taxes on employee bonuses  (Read 664 times)


  • Sr. Member
  • ****
  • Posts: 268
Avoiding taxes on employee bonuses
« on: June 10, 2018, 06:37:16 PM »
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?


  • Hero Member
  • *****
  • Posts: 3331
Re: Avoiding taxes on employee bonuses
« Reply #1 on: June 10, 2018, 06:39:07 PM »
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.

"Lethargy bordering on sloth remains the cornerstone of our investment style."
brk.b | irm | mo | nlsn | pm | tap | v | vz | wm