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View Full Version : Payment to a candidate that makes up the difference of an annual bonus?


H2OLive
Nov 25, 2011, 02:03 PM
Hello,
As an executive recruiter, I am considering 'making up the difference' of the bonus that a candidate will not receive, if he accepts a position with a client of mine. Is my payment to the candidate as the recruiter, considered to be by tax definition a Sign On Bonus?
Thank you.

AtlantaTaxExpert
Nov 25, 2011, 04:55 PM
Yes. It would be considered compensation to the client; you would originate a Form 1099-MISC for him to report the income to the IRS if it is more than $600.