Employee bonuses
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Can You Write Off Employee Bonuses?
Short answer: Yes: bonuses are deductible wages when paid (accrual businesses can deduct if paid within 2.5 months after year-end).
Bonuses are taxable wages subject to withholding.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
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Employee bonuses
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General Business
Payroll & Labor
Business Write-Off Questions
Yes: bonuses are deductible wages when paid (accrual businesses can deduct if paid within 2.5 months after year-end).
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Yes: bonuses are deductible wages when paid (accrual businesses can deduct if paid within 2.5 months after year-end). Bonuses are taxable wages subject to withholding.
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