In observance of the Thanksgiving holiday, our office will be closed Thursday, November 22nd, 2018.
We will reopen Friday for our normally scheduled business hours. Have a safe and happy holiday!
If you plan to give your employees a Christmas bonus, be sure you know the tax implications for both your business and your employees before writing out those checks.
First, you must remember that bonuses are taxable income, and you must withhold state and federal taxes, Medicare, Social Security and unemployment. Second, you as the employer have to treat the check as a paycheck.
It is not uncommon for employees to want more of their bonus up front; you can offer them the opportunity to update their Form W4 for that specific paycheck and then revert back to their original withholding for subsequent checks. They will still pay taxes on the income.
As long as the proper tax laws are adhered to, bonuses are tax deductible. If you have or expect to make a profit this year, giving your employees a bonus is advisable before the end of the year. It’s a deduction for you and it reminds your employees that you appreciate their yearlong effort.
Generally, we send accounting and tax updates. But, this seems important enough to pass it along. A good friend of ours at MJW EA & Company, Attorney Michael Sweeney, brought to our attention something extremely important if you have children:
If you do not have legal guardians named for your children and something happens to you, a judge will decide who raises your kids. There are steps you can take to make sure they will never be raised by anyone you wouldn’t want raising them. It is important that you have a will but, in the interim you can go to Kids Protection Plan for some guidance.
This is an emotional decision. Choose the best legal guardians for your children.
Shockingly, less than one-third of Americans have a plan in place for their young children if something tragic were to happen.
Take action today!
The Madison Chamber of Commerce is running its annual Scarecrow Contest and you can vote for MJW EA & Company’s entry by clicking here. This year, our entry is a cutie-pumpkin-pie and it needs your help to win. You can vote by clicking the link AND you can vote multiple times if you use different devices!
Thank you for your support!