Cash Bonus Plans - Annual and Long-term

Survey Data

Tax Considerations

  • 2013.Nov.23  "Legally binding Rights" Tax Ruling for Bonus Deductions.  In Field Attorney Advice dated 10/25/13, the IRS cites extensive authority for its position that legally binding rights do not exist when an employer has reserved to itself the unilateral right to reduce or eliminate bonus awards prior to making payments. The memo focuses on when tax deductions are allowable for cash bonus purposes.