When In Doubt, Run It Through Payroll

When In Doubt, Run It Through Payroll

03/17/2020 Tags: Announcements, In the News

If you’ve got employees who are doing a great job, you might want to pay them a bonus to recognize their efforts. Or if you send an employee to attend training, you’ll likely need to pay them while they train and possibly if they need to travel to get there.

There are a lot of situations where you might decide to pay an employee an amount above their normal wage — whether it’s a Christmas or holiday bonus, gift, award, or prize.

But no matter the reason, make sure you’re running those payments through payroll.

With few exceptions, any amount of money you pay to an employee is considered income and is taxable.

There is a limited allowance where you could pay an employee as an independent contractor. But that’s an extremely rare exception. Plus, that type of payment structure will likely open your business to heavy government scrutiny because it resembles a scam to avoid paying overtime. Not to mention that approach can lead to heavy penalties and back taxes.

Our financial experts are always here to help you answer your payroll questions — including proper reporting, processing, payroll checks, tax deposits, filing of quarterly and annual payroll reports, and more. So, if you have a question, don’t hesitate to contact us today!

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