|
You may be familiar with the rule that permits a business to deduct employee bonuses this year if it pays them within 2½ months after the end of the tax year. It’s an attractive year-end planning technique that benefits your business and your employees: You enjoy a tax deduction this year, while your employees needn’t report the income until next year.
These tax benefits aren’t always available, however, so it’s important to understand the requirements. Here’s a quick review.
| 
