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    H2OLive's Avatar
    H2OLive Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Nov 25, 2011, 02:03 PM
    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.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    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.
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