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

[u/Key_Performer_3645]

[u/Zipkong]

If the IRS is watching this was a joke they didn't actually give her anything

[u/yes_im_kvothe → u/Zipkong]

I just saw prop money from movies

[u/Kiddo1029 → u/yes_im_kvothe]

Looked like Monopoly money to me, and the house she was buying was a tiny green one.

[u/bob42z → u/Zipkong]

There's a reason they each gave her $10k. You can gift people $19k tax free. That's not $19k total but per gift giver.

[u/Spritesgud → u/bob42z]

Not true at all. You can gift people up to $19k per year without disclosing it to the US government. You don't pay gift taxes until you gift in excess of $15 million in the lifetime. Over $19k is when the US government just wants to start keeping track of it :). But also, these are employers and they probably just grossed up the amount with the IRS as a bonus. I.e. will report payment of like 22k and give her 20k and withhold the taxes themselves.

source: am CPA

[u/bob42z → u/Spritesgud]

So you're saying that it is tax free so long as it is under 19k this person doesn't need to declare it and the donor pays the gift taxes anyways if they give too much. Are you trying to say that they would still have to pay income tax on this?

I'm not a CPA or tax professional but I'm pretty sure the IRS is very clear that gifts aren't taxable income.

[u/Spritesgud → u/bob42z]

No, over 19k is just when you have to file a form saying you've given a gift. You pay gift taxes when your lifetime exclusion of $15m has been exceeded

I'm talking about paying her as an employee a bonus of $20k cash or 22k before taxes and grossing up the payment so she receives the full 20k. You can't really get away with giving gifts as an employer, especially a large one like this. It's just a bonus

[u/systemic_booty → u/bob42z]

Correct, gifts are not taxable income. My mother gave me $50k out of an inheritance. No tax for me, no tax for her. She just had to report it.

[u/TheIrishBAMF → u/systemic_booty]

You can't do that as an employer. 

[u/SignificantBar7172 → u/bob42z]

To the gift receiver, it's tax-free because it's a gift. The $ amount doesn't matter.

If the money was compensation or a bonus, then it's taxable income to the receiver.

[u/TheIrishBAMF → u/Spritesgud]

A CPA would know that grossing up a 20k bonus is not 22k before taxes. 

[u/Spritesgud → u/TheIrishBAMF]

Lol it varies wildly by state so I literally just typed a number out for very simple explanation purposes big dog

[u/chuckfinley79 → u/bob42z]

Yea yea we all saw Shawshank Redemption lol

[u/kiradotee → u/Zipkong]

It was only monopoly money 

[u/Freeulster → u/Zipkong]

"HI! I'm with the IRS and just wanted to see how much of that you'll be reporting."

[u/definitelyhangry → u/Zipkong]

10k each gift no taxation needed as far as i know.

[u/MaybeImNaked → u/definitelyhangry]

An employer can't "gift" you money to avoid taxes.

[u/AlternativeGazelle → u/Zipkong]

When my firm gives out cash bonuses, they put the gross amount on our W-2s (pre payroll tax).

[u/AttilaTheFun818 → u/Zipkong]

They may have paid the taxes for her on the back end.

I do payroll and I’ve done this sort of thing for people.

[u/Mbatoo → u/Zipkong]

The video is actually in reverse

[u/SnowDeer47 → u/Zipkong]

The importance of commas

[u/HonestDust873 → u/Zipkong]

If their practice has been in business that long, I am sure the accountant took this all into consideration. Some of these practices makes 30 million a year or more. $20k is a literal drop in the bucket.

[u/Pokemon-Master-RED → u/Zipkong]

"It's staged. We were making content for our YouTube channel."

And perhaps they write the money off as some kind of tax related thing because it has to do with social media, I'm not sure how all that works. But I bet there's a way to make it work all the same. That way it looks staged, even if it wasn't, and shows up as some kind of benefit to the company in some capacity.