Windfalls like this cannot be taking lightly and need to be approached strategically. It depends heavily on tax laws and employee finances overall.
Some common got rich quick concerns off the top of my head: Could accidentally knock people into a higher tax bracket and ruin their finances long term for short term gain. Could accidentally give someone collateral to take out a massive loan they cannot afford long term. Could make someone in a low income area a target before they have a chance to move out. Could accidentally get double taxed by doing the payout incorrectly because they’re not practiced with handling this much money. Could overinvest it all back into the company and burn too brightly negating all their success. Doing nothing and simply using it as cash reserves is better than making a foolish mistake and ruining it for themselves.
In the us, there are very rare cases where someone’s income straddles the line between benefits with a higher value than the increased income. This is not one of those cases, and it effectively only applies to people are below the poverty line and gain only a few hundred dollars in income.
It often works that way. Look at lottery winners and NFL players who end up broke as fuck overnight.
Anecdote: Knew a guy who scored a cool $1,000,000 off the VA for a testicular cancer misdiagnosis. Somehow blew every penny in 12-months, lost it all, ended up worse off. And promptly died.
This’ll trip everyone up. Paying more does not lead to better outcomes. Y’all should love it. If you read between the lines, there’s a lot of Linux culture in there. Explains much of what I’ve seen IRL.
“Lottery Winners and NFL Players” You mean it works that way often for the 1% of the 1%? Wtf are you even saying? Are you a bot or is chatGPT writing this for you? You don’t think that paying more to the 80% of Americans that live PAYCHECK TO PAYCHECK is going to be a good thing for them? Do you really think that not fearing homelessness is actually gonna make them sadder? Lol.
I hope you’re trolling and not really so sadly blind to the reality world you live in.
This isn’t a lottery amount of money from the bonus. They aren’t going to be targeted for their bonus that’s in the bank. Plus the og comment didn’t mention this, making it still a wrong take.
Woah, do you actually believe earning more means you’ll be taxed cruelly? Actually, you are only taxed more on the income FROM that bracket. Not all income the same
OK y’all, fine, OP’s higher tax bracket take is off target. But if you’re suggesting sudden and massive wealth increases for these employees? Yeah, that’s kinda fraught.
OP makes some discussion worthy points. And I agree, sit on the reserves as cash and think on it. Meanwhile, nothing leads me to believe Pocketpair isn’t doling out fat bonus stacks. They’re private, they’re not advertising compensation and it’s none of your business.
I work for a software dev in America, we get fat bonuses every year, on top of what’s guaranteed, because we keep making more than anticipated.
On top of that, imagine having “developed Palworld” on your resume. Jesus. Golden ticket there.
tl;dr: Most small companies and individuals are not prepared for this sort of success. Sudden influxes of cash must be navigated carefully.
Windfalls like this cannot be taking lightly and need to be approached strategically. It depends heavily on tax laws and employee finances overall.
Some common got rich quick concerns off the top of my head: Could accidentally knock people into a higher tax bracket and ruin their finances long term for short term gain. Could accidentally give someone collateral to take out a massive loan they cannot afford long term. Could make someone in a low income area a target before they have a chance to move out. Could accidentally get double taxed by doing the payout incorrectly because they’re not practiced with handling this much money. Could overinvest it all back into the company and burn too brightly negating all their success. Doing nothing and simply using it as cash reserves is better than making a foolish mistake and ruining it for themselves.
…you can’t ruin finances by knocking some one into a different tax bracket. This statement alone proves you don’t understand how tax brackets work
In the us, there are very rare cases where someone’s income straddles the line between benefits with a higher value than the increased income. This is not one of those cases, and it effectively only applies to people are below the poverty line and gain only a few hundred dollars in income.
Imagine being so brainwashed by your Robber Baron overlords that you literally think: More money = less money. Sad.
It often works that way. Look at lottery winners and NFL players who end up broke as fuck overnight.
Anecdote: Knew a guy who scored a cool $1,000,000 off the VA for a testicular cancer misdiagnosis. Somehow blew every penny in 12-months, lost it all, ended up worse off. And promptly died.
This’ll trip everyone up. Paying more does not lead to better outcomes. Y’all should love it. If you read between the lines, there’s a lot of Linux culture in there. Explains much of what I’ve seen IRL.
https://www.youtube.com/watch?v=u6XAPnuFjJc&t=1s
“Lottery Winners and NFL Players” You mean it works that way often for the 1% of the 1%? Wtf are you even saying? Are you a bot or is chatGPT writing this for you? You don’t think that paying more to the 80% of Americans that live PAYCHECK TO PAYCHECK is going to be a good thing for them? Do you really think that not fearing homelessness is actually gonna make them sadder? Lol.
I hope you’re trolling and not really so sadly blind to the reality world you live in.
This is probably the most ridiculous comment I’ll read on Lemmy all year and it’s only March. Wow.
Bro said the most wrong thing I’ve seen all week and won’t respond.
What if you have too much money and you become a target?
Well that’s on you for letting people know about if.
This isn’t a lottery amount of money from the bonus. They aren’t going to be targeted for their bonus that’s in the bank. Plus the og comment didn’t mention this, making it still a wrong take.
Shame is a powerful motivator for behavior change. It’s also a shame we don’t use it anymore and instead hide behind computer screens.
Woah, do you actually believe earning more means you’ll be taxed cruelly? Actually, you are only taxed more on the income FROM that bracket. Not all income the same
Lmfao
Could end up calibrating someone’s “earning potential” super high for the sake of calculating child support.
But couldn’t most of these be avoided by structuring the bonus as some sort of annuity?
OK y’all, fine, OP’s higher tax bracket take is off target. But if you’re suggesting sudden and massive wealth increases for these employees? Yeah, that’s kinda fraught.
https://old.reddit.com/r/AskReddit/comments/24vo34/whats_the_happiest_5word_sentence_you_could_hear/chb38xf/
OP makes some discussion worthy points. And I agree, sit on the reserves as cash and think on it. Meanwhile, nothing leads me to believe Pocketpair isn’t doling out fat bonus stacks. They’re private, they’re not advertising compensation and it’s none of your business.
I work for a software dev in America, we get fat bonuses every year, on top of what’s guaranteed, because we keep making more than anticipated.
On top of that, imagine having “developed Palworld” on your resume. Jesus. Golden ticket there.
tl;dr: Most small companies and individuals are not prepared for this sort of success. Sudden influxes of cash must be navigated carefully.