RE: Bonus instead of raise -- why?

Subject: RE: Bonus instead of raise -- why?
From: "Steve Arrants" <steve_arrants -at- sonic -dot- com>
To: "TECHWR-L" <techwr-l -at- lists -dot- raycomm -dot- com>
Date: Mon, 1 Oct 2001 13:10:40 -0700

> -----Original Message-----
> From: bounce-techwr-l-63935 -at- lists -dot- raycomm -dot- com
> [mailto:bounce-techwr-l-63935 -at- lists -dot- raycomm -dot- com]On Behalf Of
> dthomps -at- foundationsoft -dot- com
> Sent: Monday, October 01, 2001 1:01 PM
> Subject: RE: Bonus instead of raise -- why?
> Other respondents have raised very valid points about
> "compounding" your
> raise. But I would also like to raise another, stickier, issue.
> I'm not entirely sure if it's legal or not, but I used to
> work for a company
> which paid bonuses in a big amount and did not withhold taxes
> on them.

I'm pretty sure this IS illegal. A company I worked for in Houston
--no names, but they're merging with a Palo Alto, CA company...)--did
this to some employees back in the mid-80s. A few years later, I
(and I guess others) got letters and forms from the IRS asking us
about the transaction. The company had to pay a fine plus the
unwithheld taxes plus the interest.


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RE: Bonus instead of raise -- why?: From: dthomps

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