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Bonus for Referring a New Employee?

January 29, 2016 / By Barbara Weltman

As the competition for good workers heats up, employers are seeking new ways to bring talent into their companies. One way is to offer current employees a bonus for referring a new worker. The federal government’s Office of Personnel Management does so. If you want to offer a referral bonus, make sure you clearly define the terms (what employees have to do, how much they can receive, etc.). Note: Referral bonuses are taxable wages subject to employment taxes.

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