Bank forces employes to 'pay it forward'

[Liberal_in_LA]

Is the bank missing the point? Isn't the true spirit of "pay it forward' Voluntary? ********************************************************************************************
t.ap/index.html

Bank to employees: Pay it forwardStory Highlights
Employees may chose cause, pool money for larger project or work with donors

The bank has in the past taken 5 percent of earnings, divided it up among employees

"We're going to really see some huge impact on our community," COO says


FARGO, North Dakota (AP) -- A bank is giving its full-time employees $1,000 each and part-time employees $500 each. There's one condition -- use it for people in need.

State Bank & Trust Chief Operating Officer Michael Solberg said each full-time employee will receive $1,000 and each part-time employee will receive $500, as part of a $502,000 "Pay it Forward" initiative.

"We're going to really see some huge impact on our community," Solberg said.

*** SNIP***

In previous years, the Fargo-based bank has taken 5 percent of the company earnings and divided it up at holiday time among employees.
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So the bank gets credit for 1/2 million in donations in lieu of employee bonuses?

[Sherman A1]

1. It would appear so

while I am all in favor of good works.. coercing it just makes it rather useless.....

[Syrinx]

2. I don't see what's so bad about it

If they let the people decide which charity they want the money to go to.

[PVnRT]

13. Neither do I

I also find this sense of entitlement about even getting a holiday/Christmas/whatever bonus ridiculous.

[donheld]

3. I'd love to know how much the CEO and COO

Give to charity.

[Occulus]

4. I'd love to know if THEY got a christmas bonus.

[left is right]

5. Will the IRS consider this taxable income for the employees?

And, will they also be able to claim the tax deduction?

[maine_raptor]

9. Looks like it, and here's the sad part.

Even if they do claim a tax deduction for charity, they will not get the full deduction. Charity deductions are found on Schedule A and at the bottom of that page you have to subtract a percent of your taxable income from your subtotal before you subtract the gross amount back on your 1040. Thus you never get the full deduction.

[radfringe]

6. make deal with a co-worker

you donate your "bonus" to them, and they donate their "bonus" to you

[TorchTheWitch]

7. If they're doing this instead of the traditional employee bonuses it stinks

If the employees still get their traditional holiday time bonuses, and this is something extra, than fine, but if the company is forcing the employees to donate their holiday bonuses that they used to keep for themselves, then it stinks big time.

[Monk06]

8. "A one year membership to the Jello of the Month Club?"

"Clark, that's the gift that keeps on givin' the whole year long."

[Selatius]

10. Easy: The bank is only doing this to get a 502,000 tax write off.

The employees get a partial tax write-off at best, and the corporation gets a 500K tax shield for the fiscal year.

[shep2003]

11. pay it forward

My wife is an employee at this bank-

Yes, all employees did receive a separate Christmas bonus as
usual.  The bonus is a percentage of salary, which for most
full time employees was considerably more than the $1000
"pay it forward" bonus.

Also, all employees received a digital camcorder to record the
act of giving, which is the employees to keep.

Employees must fill out a form to be approved by the bank for
the gift, all taxes will be absorbed by the bank, not the
employees.

Last year the employees received the $1000 bonus in addition
to the regular Christmas bonus and were allowed to keep the
full amount for themselves.

The owner of the bank (one person) is known by each employee,
and if he were to document his personal giving to charity, I
am sure it would be a very substantial amount.

[angstlessk]

14. Thanks for the update and welcome to DU! sounds like a great place

to work!

[Liberal_in_LA]

15. Great! I'm glad it's a better deal than what I read in the media.

[Mike03]

12. This is a PR stunt

They are asking the employees to film or otherwise document their good deeds, and I expect these to show up in (heart-rending) commercials.

If the employees donate a bonus to a non-profit 501C, who gets the tax write-off?