Non Taxed Bonuses

[jdamron]

What is the name of your state? IL

Hello,

My CEO asked me how he can pay a bonus to an employee of 30K without the employee paying taxes on it. He doesn't want to increase the bonus to offset the taxes.

I know that there is a way with a lawsuit to make a settlement payment to an individual without the individual paying taxes. But I don't know what that is nor if it covers this.

Thanks in advance!

 

[pattytx]

Settlement for what? Ordered by the court or negotiated?

 

[Gadfly]

Bonus or Settlement?

 

[turbowray]

hmmm

i would think if your boss is trying to hide the fact it is a bonus by saying it is a settlement is crazy. Can he put the "bonus" into a tax deffered retirement or investment plan so you dont have to pay the taxes on it until you use it,this way you get the bonus via retirement plan but no taxes because it is not taxable until you take some or all of it out...just grabbing at straws here but you dont have barely any information for someone to answer the question. Maybe the boss could pay you the bonus under the table since he sounds like he wants to break the tax laws anyhow lol...sorry but either way it is wrong and you and he should pay the taxes owed for what you recieve.