Author Topic: Avoiding taxes on employee bonuses  (Read 583 times)

chrispy

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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?


LC

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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.

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