Mid year bonus

[Anonymous]

MB here. I was thinking of softening the blow I would take at the end of year with my nanny's bonus. It's her firs year with us but I was thinking of splitting it up into a mid and end year but the same amount that I would give at the end of year?

is there any appeal to the nanny to doing this? She's doing a great job so far.

Also for other MB's do you tax the bonus like you do her wages?

Not sure ..so new to this.

[Anonymous]

I wouldn't do it. She is going to still expect a lot at the end of year and you won't have the money to give. Perhaps if she is doing a good job now and you want to reward her, get her a gift card and express your appreciation.

[Anonymous]

I think as long as you explain that you're dividing it, I don't see a problem.

Some tax, some don't.

[Anonymous]

Why not put the money aside now, but give it to her in one lump sum at year end? Soften the blow for you as you say, but she still gets the large bonus.

[Anonymous]

Put the money aside now but don't give it. She will almost certainly still expect a big Dec bonus and even if you explain it now she'll feel let down in Dec when she needs to do her own holiday shopping.

[Anonymous]

Anonymous wrote:Put the money aside now but don't give it. She will almost certainly still expect a big Dec bonus and even if you explain it now she'll feel let down in Dec when she needs to do her own holiday shopping.

Never depend on a bonus for personal expenses before it's in your hands.

[Anonymous]

Anonymous wrote:Put the money aside now but don't give it. She will almost certainly still expect a big Dec bonus and even if you explain it now she'll feel let down in Dec when she needs to do her own holiday shopping.

+1

[Anonymous]

Anonymous wrote:

Anonymous wrote:Put the money aside now but don't give it. She will almost certainly still expect a big Dec bonus and even if you explain it now she'll feel let down in Dec when she needs to do her own holiday shopping.

Never depend on a bonus for personal expenses before it's in your hands.

+1

[Anonymous]

I wouldn't give it now. Put it aside if you need to for your own budget, but no need to give it. I would otherwise express your appreciation though - that is important. And yes, you are supposed to tax the bonus. Some probably don't, but our tax/payroll company tells us we have to.

[Anonymous]

You are supposed to tax the bonus, but it's the one thing I give her in cash all year and don't report. I have never given a full week's salary, though, and figure the tax bonus makes it worth a little more. If I do a full week's salary, I might report it legally. Haven't decided yet.

[Anonymous]

Put the money aside and give her the full bonus in December. You don't want to establish a precedent for mid-year bonuses or diminish the impact of that big check. My nanny tells me she loves seeing her checking account balance shoot up!

[Anonymous]

As a nanny if you sat down and told me this, I'd be totally ok with it. Just explain to her you want to split up bonuses to help so that you can financially afford to give bonuses at all. I would understand this entirely.

[Anonymous]

Anonymous wrote:As a nanny if you sat down and told me this, I'd be totally ok with it. Just explain to her you want to split up bonuses to help so that you can financially afford to give bonuses at all. I would understand this entirely.

The affordability argument doesn't really make sense. It is more of a cash-flow issue for OP since the amount would not change, just the timing.

[Anonymous]

Anonymous wrote:

Anonymous wrote:As a nanny if you sat down and told me this, I'd be totally ok with it. Just explain to her you want to split up bonuses to help so that you can financially afford to give bonuses at all. I would understand this entirely.

The affordability argument doesn't really make sense. It is more of a cash-flow issue for OP since the amount would not change, just the timing.

It's completely affordability. Putting money "aside" doesn't work well for everyone. What should she do take it out o the bank and put it under the mattress until Christmas? A lot of people just received their tax refunds and then 6 months from now she could have time to save up for the addition to the bonus. Sure it's not perfect budgeting, but it's really not that big of a deal.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:As a nanny if you sat down and told me this, I'd be totally ok with it. Just explain to her you want to split up bonuses to help so that you can financially afford to give bonuses at all. I would understand this entirely.

The affordability argument doesn't really make sense. It is more of a cash-flow issue for OP since the amount would not change, just the timing.

It's completely affordability. Putting money "aside" doesn't work well for everyone. What should she do take it out o the bank and put it under the mattress until Christmas? A lot of people just received their tax refunds and then 6 months from now she could have time to save up for the addition to the bonus. Sure it's not perfect budgeting, but it's really not that big of a deal.

You don't need to take the money out of the bank to "put it aside". If OP needs to remove it from her checking account to avoid spending it, she could put it in a savings account or money market. She could write a check, deduct it from her check register, and then tear up the check at bonus time and write a new one for the full amount. BTW, if you are getting a sizable tax refund, you are loaning the money to the US government interest-free. You would be better off decreasing your deductions and getting the additional money in your paychecks. This is a cash-flow issue, not an affordability issue.