Christmas Bonuses?

An anonymous reader asks: "I run a small startup company who was able to turn a buck during this past year. To say 'Thank you' to the employees who put in so much time and effort to get us financially stable I would like to give them a Christmas bonus. However, I've never received one before, so what is appropriate? I have 5 employees and I want to give them all the same bonus, but while I can afford about $1500 a person, is that too much? Would gifts be more appropriate then money? What are some bonuses the Slashdot crowd has received in the past?"

Comments

No Bonus

[perljon]

Ask them if they want a bonus. Maybe instead, you can put $1500 aside for employee benefits or something. Let them choose a $1500 bonus or a $1500 discretionary spending budget. If you give them $1500, they actually only get $750 after taxes. The tax benefits for you are the same either way.

However, if you setup a descretionary fund, then the employee can spend the full $1500 ( on a laptop, free road runner, free home telephone service, better health insurance, child care, or whatever else can be considered a business item or an employee benefit). Pay for something for them that they're buying any way. It's the same to you either way, but your employee gets twice the benefit if you don't give them the bonus.