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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

Let me know if any questions.


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