Thinking of paying employee bonuses don’t fall into this trap. I was meeting with a client the other day and they were talking about bonuses, and they were just gonna be cutting checks, and we explained to them that bonuses are, you’re required to run those through payroll, and you’re not allowed to just pay bonuses separately from regular paychecks.
So we discussed how that could happen. And how that could affect the employee’s deductions. If the bonuses included with their regular paycheck, they could get zapped with taxes. So we explained to them that we could run a second check through payroll. Whenever they wanted to run them, if the employee was on direct deposit, but they wanted to hand them a paper check for the bonus to have like a celebration, we could do that.
So there’s all different ways to do bonuses, but we just wanna make sure that our clients and this client in particular, who was going to do it the wrong way, we were able to get them to understand how you run bonuses and the importance of doing it properly so they don’t get in trouble with the government.
And that’s bottom line, what we’re looking for to make sure our clients are compliant.
