Expert: Ed McFarland - 11/16/2006

Question
I have a client who - just before year end - pays excessive bonuses to their employees (mostly family members) - with extremely smaller bonuses to the "hired" help.  I need to advise them and am not sure on how to do this - can you help?
Thank you, Barbara

Answer
Advise him about what? If it is about unfairness, I don't think you have much to go on.

Now one way you could advise him to give more to the non-family would be adding profit sharing or some other defined contribution plan and show the tax advantages to make it worth doing.

Let me know what you're trying to do.