Management is wanting to pay a flat fee bonus to a couple of employees that worked hard on a large agricultural loan. I don't have to worry about the Reg Z restrictions on compensation but I didn't know if there were other legal issues or accounting issues that we need to consider. Can we just run it through loan expense and do the flat amount and not tax? If you aren't sure, do you know where I could look besides having to pay our attorney?

Thanks

So, can anyone give me any ideas?

Should we just pay the flat fee through payroll and provide a 1099? Should be do it as a commission?

Bonuses paid to W-2 employees are wages. You would run it through your normal payroll process.

Ok. Thanks.