First State CPAs and Associates

2 hours ago

𝗪𝗵𝗮𝘁 𝘀𝗵𝗼𝘂𝗹𝗱 𝗜 𝗵𝗮𝘃𝗲 𝗿𝗲𝗮𝗱𝘆 𝗯𝗲𝗳𝗼𝗿𝗲 𝗿𝘂𝗻𝗻𝗶𝗻𝗴 𝘆𝗲𝗮𝗿-𝗲𝗻𝗱 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲 𝗯𝗼𝗻𝘂𝘀𝗲𝘀 𝘁𝗵𝗿𝗼𝘂𝗴𝗵 𝗽𝗮𝘆𝗿𝗼𝗹𝗹?

Before you start processing bonuses, you'll want to document your payout decisions and give yourself enough time for the payments to clear.

Start with a written bonus plan that includes:
• Why you're giving the bonuses (such as meeting annual revenue goals)
• How you're calculating each amount
• Which employees are receiving a bonus
• The total amount you've budgeted
• Written approval from the business owner

And don't forget to account for payroll processing time. Most payroll processors take 2-4 business days to clear direct deposits.

𝙒𝙖𝙣𝙩 𝙩𝙤 𝙢𝙖𝙠𝙚 𝙨𝙪𝙧𝙚 𝙚𝙫𝙚𝙧𝙮𝙩𝙝𝙞𝙣𝙜'𝙨 𝙞𝙣 𝙤𝙧𝙙𝙚𝙧 𝙗𝙚𝙛𝙤𝙧𝙚 𝙮𝙤𝙪 𝙥𝙧𝙤𝙘𝙚𝙨𝙨 𝙮𝙤𝙪𝙧 𝙝𝙤𝙡𝙞𝙙𝙖𝙮 𝙗𝙤𝙣𝙪𝙨𝙚𝙨?

DM us to set up an appointment to go over your plan. ... See MoreSee Less

First State CPAs and Associates

2 days ago

𝗜𝗳 𝗜 𝗽𝗿𝗼𝗺𝗶𝘀𝗲 𝗺𝘆 𝗲𝗺𝗽𝗹𝗼𝘆𝗲𝗲𝘀 𝗮 $𝟱𝟬𝟬 𝗵𝗼𝗹𝗶𝗱𝗮𝘆 𝗯𝗼𝗻𝘂𝘀, 𝗵𝗼𝘄 𝗰𝗮𝗻 𝗜 𝗺𝗮𝗸𝗲 𝘀𝘂𝗿𝗲 𝘁𝗵𝗲 𝗳𝘂𝗹𝗹 $𝟱𝟬𝟬 𝗮𝗰𝘁𝘂𝗮𝗹𝗹𝘆 𝗿𝗲𝗮𝗰𝗵𝗲𝘀 𝘁𝗵𝗲𝗶𝗿 𝗯𝗮𝗻𝗸 𝗮𝗰𝗰𝗼𝘂𝗻𝘁𝘀?

You can make sure your employees take home the full $500 by running a grossed-up bonus through payroll.

If you run a standard $500 bonus, your employees will receive less than that after payroll withholdings.

With a grossed-up bonus, you increase the total payment to cover those withholdings so your employee still takes home $500.

But that also means your business will spend more than $500 per employee.

Before promising a specific take-home amount, calculate the full cost of the bonus, including the required withholdings. Then you can budget for what you'll actually spend. ... See MoreSee Less