Many employers have operated under the assumption that as long as they pay bonuses within 2 ½ months after year-end, the bonuses are deductible in the year earned, rather than in the year paid. The IRS in recent years has aggressively attacked this position, arguing that many bonus plans fail other requirements that must be satisfied before claiming a current year tax deduction. These recent rulings have left employers wondering how to structure their bonus plans to qualify for a current deduction, or more importantly, whether they even should.
In this session, we will summarize the recent IRS attacks, focusing on the bonus plan elements that are sabotaging current tax deductions. We then will discuss best practices in plan design to ensure that bonus programs are market competitive, satisfy business objectives, effectively reward and motivate employees, yet still position the company to deduct accrued bonuses currently.
Registration is free and this course is eligible for 1 CPE credit.
CBIZ & MHM Executive Education Series:
Webinar: Creative Ways to Structure Bonus Plans and Ensure Current Tax Deduction
Thursday, Sept. 17, 2015, 1-2 p.m. CDT