"The report says that providing awards to employees who fail to pay taxes "appears to create a conflict with the IRS's charge of ensuring the integrity of the system of tax administration."
I don't think there is the need to use the word "Appears". The situation actually "creates" the conflict... Bonuses are currently based on short-term results rather than how ethical and sustainable employees perform their work.
Bonuses should only be given out because a certain performance threshold was met. This should be clearly stated in the contracts of any employee that deserves bonuses. There should be a standard for bonuses at every company set by the board of directors or shareholders so that mistakes such as the IRS case do not happen.
I agree with the previous comments. In particular, I think bonuses should be based on a long-term metric for company growth in order to align the interests of employees with the long-term/strategic goals of the company. In practice, I realize this is difficult to do though. Stock options have been one attempt at solving this problem, but even they have failed at times.
I thought bonuses were only given to high perfuming workers at the end of the year? The article says that not all employees were under the law of deliquents not getting bonuses, so i guess it is IRS's problem. The ethical thing to do would be to change the law to cover all employees.
"The report says that providing awards to employees who fail to pay taxes "appears to create a conflict with the IRS's charge of ensuring the integrity of the system of tax administration."
ReplyDeleteI don't think there is the need to use the word "Appears". The situation actually "creates" the conflict... Bonuses are currently based on short-term results rather than how ethical and sustainable employees perform their work.
I think private businesses ought to be allowed to compensate their employees in any non-discriminatory manner they choose.
ReplyDeleteBonuses should only be given out because a certain performance threshold was met. This should be clearly stated in the contracts of any employee that deserves bonuses. There should be a standard for bonuses at every company set by the board of directors or shareholders so that mistakes such as the IRS case do not happen.
ReplyDeleteI agree with the previous comments. In particular, I think bonuses should be based on a long-term metric for company growth in order to align the interests of employees with the long-term/strategic goals of the company. In practice, I realize this is difficult to do though. Stock options have been one attempt at solving this problem, but even they have failed at times.
ReplyDeleteI thought bonuses were only given to high perfuming workers at the end of the year? The article says that not all employees were under the law of deliquents not getting bonuses, so i guess it is IRS's problem. The ethical thing to do would be to change the law to cover all employees.
ReplyDelete