Hi, we pay some employees bonuses 6 months - 1 year prior to their actual start date.
We have been doing this by hiring them in as flex status employees and paying out the bonus. This allows for the appropriate taxes to be withheld. When they actually start work, we complete a status change from flex to fulltime and change their employment dates.
We are looking to change our process as it is causing issues downstream and wondering how other Infor/Lawson using companies handle bonuses paid pre start date.
Thanks so much!
Joanne