Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Payment to a candidate that makes up the difference of an annual bonus? (https://www.askmehelpdesk.com/showthread.php?t=614678)

  • Nov 25, 2011, 02:03 PM
    H2OLive
    Payment to a candidate that makes up the difference of an annual bonus?
    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.
  • Nov 25, 2011, 04:55 PM
    AtlantaTaxExpert
    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.

    • All times are GMT -7. The time now is 02:00 PM.