E158 LinkedIn Content – Stop Wasting Crew Bonuses
Most contractors reward their crew in the most expensive way possible.

Cash bonuses.

Gift cards.

Random reimbursements.

A few tools bought here and there with no policy.

The intention is good.

The structure is usually a mess.

You give a guy a $500 bonus because he saved a job, worked the weekend, or helped avoid a costly mistake.

Then payroll taxes hit it.

Withholdings hit it.

The employee does not feel the full $500.

The business pays more than expected.

And the IRS gets a piece of money that could have gone toward a smarter benefit.

That is not generosity working against you.

That is bad design working against you.

Contractors should be looking at benefits like tools, safety gear, training, health insurance, non-cash safety awards, uniforms, and professional development.

Some of those can be deductible to the business and tax-free to the employee when structured correctly.

But the key phrase is structured correctly.

Not random.

Not casual.

Not handled through text messages, gift cards, Venmo, cash envelopes, and loose receipts.

You need written policies.

You need clean books.

You need to know what is taxable and what may qualify as a tax-free fringe benefit.

This is how construction companies stop leaking money through sloppy payroll decisions.

The goal is not to be cheap with your crew.

The goal is to take care of your people in a smarter way.

Better benefits.

Cleaner tax treatment.

Stronger retention.

Less waste.

If you are a contractor and you are not sure whether your bonuses, reimbursements, payroll, and benefits are set up correctly, it is worth reviewing before year-end.

Once the year is over, your options shrink fast.

Book a 15-minute consultation with ASLLP if you want help reviewing your structure.

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Disclaimer: This content is provided for educational purposes only and is not legal, tax, accounting, or financial advice. Every situation is unique, so consult your own attorney, CPA, or financial advisor before making decisions based on this information.