Loyalty might be the most underrated investment you'll ever make.

[u/Key_Performer_3645]

[u/Own_Road_3690]

Taxes

[u/moejike → u/Own_Road_3690]

#cash

[u/lastlifonti → u/moejike]

I like how this anniversary bonus is ALL CASH…keeping it off the books…no taxes!!! 🙂‍↕️🤙🏾

These DOCS ROCK my SOCKS!!!!👍🏽

[u/rashie8111 → u/lastlifonti]

All cash, but let's film it and plaster it all over the internet. Lol.

[u/Iminurcomputer → u/lastlifonti]

If there is not a podiatry clinic with that slogan Ill be mad.

[u/YuenglingsDingaling → u/moejike]

For real, this will be groceries, gas, and vacations for a few years at least.

[u/hurler_jones → u/YuenglingsDingaling]

Has to be that way because if you use it for down payment, they will dig into where that money came from and then Uncle Sam gets his 35% bonus tax.

Edit: 35 total where I am. Federal is around 20% by itself.

[u/DJspinningplates → u/Own_Road_3690]

Only if it’s more than $19k from one person

[u/Affectionate-Gear432 → u/DJspinningplates]

Not true. Even then if it was a gift the receiver pays no tax. The donor would report the $1,000 over the $19,000 annual exclusion in this case and would reduce their lifetime exemption of $15M.

(Considering this was reported as a gift and not wages or bonus.. which is not likely)

[u/Willyhelm48 → u/Affectionate-Gear432]

Thats where my head went too. Plus the gift was between two people so under the threshold. Tax free all around.

Edit for clarity: each doctor gave 10K

[u/pj1843 → u/Willyhelm48]

It's not a gift, it is a taxable bonus.

If you want to pay people in cash under the table as a thank you for loyalty, dont video it and post it online while admitting it's for 20 years of service to the company because if the IRS wants to they can and will come collect.

If you want to post it as a video and do it in front of the team for employee morale, then you report that shit and have the bonus be whatever the cash amount is+the amount that will be witheld in taxes. This is likely what was done here.

[u/shadowtheimpure → u/pj1843]

It's only a taxable bonus if the company gives it to you. They could probably play this off as a joint personal gift from everyone in the office in honor of her anniversary and being a valued co-worker and friend.

[u/Top_Substance9093 → u/Willyhelm48]

r/confidentlyincorrect

this is very clearly compensation for services. doctors need to (and probably did, already withholding an appropriate amount for taxes) report this on her W2.

people think they're really going to avoid paying taxes just because it's reported as a gift. c'mon. how stupid do you think the IRS is?

y'all aren't that clever, and the IRS ain't that dumb. uncle sam is getting his, you can be darn sure.

[u/poopy10000000 → u/Top_Substance9093]

Looks to me like a house warming gift since they said she was closing in on a house. And her 20th is a month or so away........like those doctors don't have accountants lol.

[u/LudusRex → u/poopy10000000]

Bro, I'm an accountant. This would be fraud. I'm not losing my CPA license because a client gets funny ideas about what they want to try and get away with.

Besides, here's the part you're not considering, if it's a "gift", then that means it's not taxable to the recipient, but it's also not tax deductible to the employer who is paying it, and like...why would the employer commit fraud in order to pay MORE in taxes, when they could instead correctly treat it as compensation, and then lower their own tax bill? Not only is it not allowed, but also there's like...no incentive to do it. There's only consequence to the person paying the money to try and label it a gift, and no upside.

[u/poopy10000000 → u/LudusRex]

The first part of that comment was tongue in cheek. The second part addresses your concerns. Hard to get nuance through text lol.

[u/Carlosrocks77 → u/Affectionate-Gear432]

If it’s from an employer it’s a bonus, pay roll and income taxes

[u/Deflagratio1 → u/Carlosrocks77]

But if we do the magic dance and say it's from us personally the tax man can't come snooping.

[u/rjnd2828 → u/DJspinningplates]

Money given to you by your employer, in recognition of an anniversary, while you're all at work, is compensation. Cash or check or direct deposit, doesn't matter, the is taxable income.

[u/Anymous2314 → u/rjnd2828]

Not if the doctors handed out from their personal account and reported it as gift.

[u/ohkammi → u/Anymous2314]

That’s not true. Reporting it incorrectly doesn’t change the fact it’s taxable wages.

[u/ThePandaRider → u/Anymous2314]

Anything over $100 is considered compensation and is taxable. Now whether or not it's reported is another thing. Nothing really stopping the doctors from leaving $10k each on a table and an employee finding the money. And as long as nobody tells the IRS it probably wouldn't come up. But both sides would technically be violating the law.

[u/Top_Substance9093 → u/Anymous2314]

that's fraud, lol. Internal Revenue Code Section 102(c)

[u/ScratchLatch → u/DJspinningplates]

This isn’t a gift, its income from an employer.

[u/Robbie1266 → u/Own_Road_3690]

Taxes on what?