No such thing as a “tax free” lunch

No such thing as a “tax free” lunch: Even if you read something in a gossip column of a certain newspaper,
like, say, that 100 employees of O Magazine are getting a “tax free”
bonus of $5,000 each, don’t believe it. No such animal exists as a “tax
free” bonus. Obviously (to those other than a gossip columnist), the
big O and Hearst have “grossed-up” the bonuses so that the employees
receive $5,000 net, “after taxes.” I may not be an accountant, but
during a certain week in mid-April, I am aware of such things.

  • Blair Stilwell

    I wonder, could employees increase their withholding to maximize the “grossed-up” bonuses when April 15 rolls around?

  • Tom Biro

    I’m waiting to hear all the Hammock employees requesting “grossed up” bonuses on the anniversary of the Rexblog and other Rex-related happenings.