Bonus/Cash Rewards

AZHR

We recently rejuvenated our Recognition/Reward Program. Employees can be nominated to receive a Cash Reward of anywhere from $50 - $1500 in recognition of special accomplishments, participation on special projects, etc. If you have a similar Reward program, do you "gross- up" the bonus or do you take taxes out of the bonus? I'm proposing we "gross-up" the bonus so the employee receives the full value of the bonus. Just curious to see what others do.

Thanks and have a great weekend.

ray a

We give spot bonuses for special recognition ranging from $100 to $500. We always net it out so they take home full value.