If a company has money left over before their year-end, and decides to pay it out to their employees in bonuses, stock options, etc, this reduction would come out before calculating their profit. As long as the company isn't retaining any earnings, they wouldn't have to pay corporate tax. The employees who receive the benefits would still be on the hook to pay for it, so the government gets their share via income tax.
If a company has money left over before their year-end, and decides to pay it out to their employees in bonuses, stock options, etc, this reduction would come out before calculating their profit. As long as the company isn't retaining any earnings, they wouldn't have to pay corporate tax. The employees who receive the benefits would still be on the hook to pay for it, so the government gets their share via income tax.
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