If an employee owes back taxes to the IRS can an employer still issue bonus checks to this employee?

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If an employee owes back taxes to the IRS can an employer still issue bonus checks to this employee?

At the end of the year this employee will be given at 1099 for the bonus check issued.

Asked on April 29, 2014 under Employment Labor Law, Texas

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Yes, the employer can issue bonus checks to an employee who owes back taxes to the IRS. It's possible the IRS will try to garnish this employee's wages, including any bonus--but that does not affect the employer's ability to issue the check in the first place. Liability or potential liability to the IRS does not affect the employer/employee relationship.


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