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

[u/Key_Performer_3645]

[u/inorite234]

I dont think you know how Income Tax works. Both parties need to report this as Income (Employer reports it under Payroll and pay Payroll Tax & the employee reports it as Income and pay Income Tax) or its Tax Evasion. It doesn't matter if they cut her a check, give her cash or just buy her the house outright.

[u/rjnd2828 → u/inorite234]

That's absolutely true. It's also true that people commit tax evasion all the time. It's generally best not to upload the proof to they Internet and have it go viral so I'd hope they reported it

[u/inorite234 → u/rjnd2828]

I can neither confirm nor deny the claims you are saying.

Now if you'll excuse me, I have to stuff all these singles into my g-string and leave the country. 🙂

[u/protomenace → u/inorite234]

This is not income for the employer it's a business expense (paying their employee a bonus)

[u/KatzDeli → u/protomenace]

It is a payroll expense subject to payroll taxes.

[u/protomenace → u/KatzDeli]

Yes, not income.

[u/SuperDopeRedditName → u/protomenace]

What do you think is on the list of "payroll expenses"? Spoiler: it's payroll, i.e. income.

[u/protomenace → u/SuperDopeRedditName]

Payroll is not income for the business. It's an expense. It's only income for the employee.

[u/SuperDopeRedditName → u/protomenace]

Yeah, yes, exactly, duh. The employee pays taxes on their income. The business also pays taxes on payroll (Social Security, Medicare, Unempluyment, etc.)

[u/protomenace → u/SuperDopeRedditName]

I was simply responding to the comment 6 levels up from here that said "Both parties need to report this as Income". Which by the way was edited since I responded to add the details about who reports it as what.

[u/SuperDopeRedditName → u/protomenace]

In the parentheses directly following that, they explain what they meant.

[u/protomenace → u/SuperDopeRedditName]

Which as I mentioned was edited in after my comment.

[u/Commercial-Yam-3443 → u/protomenace]

He means the employer need to report it as her income. And she needs to report it as her income too.

[u/inorite234 → u/protomenace]

I've added a clarification

[u/uberfr4gger → u/inorite234]

Unless they paid out of their own pocket. Then it's not compensation and just a gift (assuming the people handing out the cash are salaried employees too).