Are Holiday Bonuses Taxable?

December 5, 2012 by Ed Becker

Every year I receive questions on what to do for bonuses for employees. It appears that everyone has there own ideas on how to handle bonuses and whether they are taxable.

Short answer: Bonuses are taxable to your employees, but deductible expenses for your business. For a longer answer, including the best way to handle bonuses from a tax perspective, check out this post over at SMT & Associates business blog: Taxation of Christmas Bonuses