E158 LinkedIn Content – Your Bonus Plan Is Costing You
Most contractors reward their crew in the most expensive way possible: cash bonuses, gift cards, and random reimbursements.

The intention is good. The structure is usually bad.

A $1,000 bonus does not feel like $1,000 after payroll taxes and withholding. Gift cards are usually treated like cash. Tool reimbursements without a written policy can create messy books and tax problems.

The smarter move is to build a real benefit strategy. Tools, safety gear, uniforms, training, health benefits, professional dues, and certain non-cash awards may create more value when they are structured correctly.

The goal is not to be cheap with your crew. The goal is to reward them without wasting money through bad payroll design.

If you own a construction business, review your bonus and benefit structure before year-end. Once the year closes, your planning options shrink fast.

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.