First Employee
“I want to offer my employees a massive year-end bonus but I am worried about the tax hit, what is the most tax-efficient way to pay out bonuses?”
Year-end bonuses can create different tax and payroll outcomes depending on how they are structured, when they are paid, and whether they are treated as supplemental wages or folded into regular payroll. The overall impact often depends on the company’s payroll setup, the employee’s withholding profile, and whether the bonus is tied to performance, retention, or discretionary compensation. In some cases, timing the payment and coordinating payroll reporting can affect cash flow and the employer’s tax handling, while the employee’s net amount is also shaped by federal, state, and local withholding rules. Working through the specifics with a CPA is the cleanest way to land on the right move.
In your 90-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“Should I pay someone as a 1099 contractor or an employee for tax purposes?”
“How do I know if I should hire someone as a contractor or employee for taxes?”
“I am hiring my first worker, should they be 1099 or W-2 for tax reasons?”
“What changes on my taxes if I use a 1099 contractor instead of an employee?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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