I’m vetting an offer of employment. Is it common (copacetic) practice to pay out bonus (4% settled of cases given by firm and 30% for origination) via 1099? Cursory Google research says 🚩 but would appreciate any feedback in this regard.

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No

That’s not how I used to receive bonuses. Everything was taxed.

Depends on the firm, and size of the files!

In the event the file goes to trial, I would assume there’s a clause for a bigger cut.

Must be taxed. So you’ll have to pay it. Discuss with your accountant.

So this is great if you have your own PC or PLLC that you use for referrals and/or 1099 work. You will save on the taxes as opposed to being paid your bonus via W2.

Its interesting to see so many people saying not to do it but giving no explanation as to why. I am curious why this would be a red flag. I don't think its a big deal at all.

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