Why Christmas Party but No Bonus?

[Ravi]

This always annoyed me. Instead of throwing a $20,000 Christmas Party, how about just giving people bonuses? Or even family picnics and/or other "expenses".

I'm sure there must be some sort of "tax" reason for it (e.g. a party is a pure business expense to write off vs. having to pay taxes on payroll) - but seriously.... it's not THAT much money, and people would be much happier to get the cash!

Another good reason to have the tax code changed.

You can write off bonuses.

But you have to pay taxes on wages that you don't on just a normal business expense, right?
There has to be a reason they are stingy about giving folks $.

It doesn't really matter. What ever you pay out to your employees is a business expense and fully deductible.

 

[frigidweirdo]

$20K for the xmas party?????

Good ******* gawd, who do you work for?

No, don't answer that but that's a LOT of little weenies wrapped in bread dough. For that kinda money, they better be serving lobster.

You could always take home a big bag of leftovers and steal paper clips.

Or get a different job.

Trust me! The spend a LOT! Mostly though on food and travel (needless....) I figured all companies were like this. It's like pulling teeth to get increased wages or bonuses, but, anything else goes! $20k might have been an exaggeration, but there was one meal I saw that cost $4,000 (most of it was alcohol).....

My last xmas dinner, food was paid for, drinks not, must have cost about $10 a person, for about 15 people.

The company I currently work for, no chance of an xmas dinner at all. There was talk of going for a meal, half the workers have left since they last attempted to organize it and it disappeared into nothing.

 

[Bonzi]

This always annoyed me. Instead of throwing a $20,000 Christmas Party, how about just giving people bonuses? Or even family picnics and/or other "expenses".

I'm sure there must be some sort of "tax" reason for it (e.g. a party is a pure business expense to write off vs. having to pay taxes on payroll) - but seriously.... it's not THAT much money, and people would be much happier to get the cash!

Another good reason to have the tax code changed.

You can write off bonuses.

But you have to pay taxes on wages that you don't on just a normal business expense, right?
There has to be a reason they are stingy about giving folks $.

It doesn't really matter. What ever you pay out to your employees is a business expense and fully deductible.

well I guess corp execs are just morons then...........
the only other reason I can think of is that they don't want employees to start "depending" on the bonus income.....

 

[Ravi]

This always annoyed me. Instead of throwing a $20,000 Christmas Party, how about just giving people bonuses? Or even family picnics and/or other "expenses".

I'm sure there must be some sort of "tax" reason for it (e.g. a party is a pure business expense to write off vs. having to pay taxes on payroll) - but seriously.... it's not THAT much money, and people would be much happier to get the cash!

Another good reason to have the tax code changed.

You can write off bonuses.

But you have to pay taxes on wages that you don't on just a normal business expense, right?
There has to be a reason they are stingy about giving folks $.

It doesn't really matter. What ever you pay out to your employees is a business expense and fully deductible.

well I guess corp execs are just morons then...........
the only other reason I can think of is that they don't want employees to start "depending" on the bonus income.....

Some companies do both a bonus and a party. We normally do bonuses.

 

[Bonzi]

Another good reason to have the tax code changed.

You can write off bonuses.

But you have to pay taxes on wages that you don't on just a normal business expense, right?
There has to be a reason they are stingy about giving folks $.

It doesn't really matter. What ever you pay out to your employees is a business expense and fully deductible.

well I guess corp execs are just morons then...........
the only other reason I can think of is that they don't want employees to start "depending" on the bonus income.....

Some companies do both a bonus and a party. We normally do bonuses.

We actually get bonuses too (not very good ones) - but, I see how much money is being spent on activities and get togethers, food etc. Being that my company is involved in sales, you would think they would want their salespeople out and about, not at meetings, training seminars, lunches and parties!

 

[Ravi]

You can write off bonuses.

But you have to pay taxes on wages that you don't on just a normal business expense, right?
There has to be a reason they are stingy about giving folks $.

It doesn't really matter. What ever you pay out to your employees is a business expense and fully deductible.

well I guess corp execs are just morons then...........
the only other reason I can think of is that they don't want employees to start "depending" on the bonus income.....

Some companies do both a bonus and a party. We normally do bonuses.

We actually get bonuses too (not very good ones) - but, I see how much money is being spent on activities and get togethers, food etc. Being that my company is involved in sales, you would think they would want their salespeople out and about, not at meetings, training seminars, lunches and parties!

You should poll your co-workers and if enough of them would rather get bonuses discuss it with management. Basically it is all about morale so they should be willing to do what makes the employees happy.

 

[RKMBrown]

Used to be having a team / company get together was a good thing. It was a time to set aside work and get to know your team and management. Then we started turning out people like Bonzi from our schools.

 

[JOSweetHeart]

I agree. Because I am not a high strung person, to me, going all out like that is not necessary. Whatever would go towards such an event could be divided among those that the party would be for.

God bless you always!!!

Holly

 

[charwin95]

Bonus vs Christmas party.
Its mandatory to have our christmas party every year but bonuses is only given depending on how the company performance that particular year. Like 2014 and for sure 2015.
Any kind of company gathering is good for employees moral. We have several free catered lunches each year, raffles and company summer picnic where you meet family members.
Depending on the size of the company $70k to $100k Christmas party bill is not a surprise. The venue, food, drinks raffle prizes are all part of the expenses.
It was brought to me once to scrap the Xmas party and divide to all employees. My answer was no and it's my party.

 

[ChrisL]

Used to be having a team / company get together was a good thing. It was a time to set aside work and get to know your team and management. Then we started turning out people like Bonzi from our schools.

Ha-ha! Yeah, because most people would MUCH rather do that than have a bonus check, amirite?

 

[RKMBrown]

Used to be having a team / company get together was a good thing. It was a time to set aside work and get to know your team and management. Then we started turning out people like Bonzi from our schools.

Ha-ha! Yeah, because most people would MUCH rather do that than have a bonus check, amirite?

I don't think you guys understand math very well. The option is probably a 50 buck bonus for everyone or a party for everyone and their families. You guys see 20k and think I want that 20k. lol Me... I'll take my 40k bonus and go to the 20k party.

 

[HUGGY]

start your own company and you can give bonuses to anyone you want to, any time you like.

That's how the real world works.

So employees shouldn't voice their opinions about things like Xmas parties and the like?

Not on company owned computers or phones. The bosses have the right to snoop in on their own equipment.