On December 31st, you gross up everyone's pay by say $10k, and pay taxes that are the marginal rate for YTD income.
Of course this doesn't fully cover the taxes for dual income high earners, and it can create some additional taxes for employees that have other income, because now their base is $10k higher. In this case, the change will cost these employees up to a few hundred dollars.
A tax change that may cost someone a few hundred dollars, pretty quickly get's lost in the noise when you are talking about multi thousand dollar raises and bonuses.
It's nice to pretend that it as easy as waving your hand and saying everyone got $10k worth of perks, but what about people who didn't? Really, not everyone is eating the corporate food every day. Not everyone is going to the corporate happy hour. It is not fair, or possibly even legal, to just amortize the costs across everyone.
When faced with the accounting and legal overhead, companies are going to throw these perks out the window.
On December 31st, you gross up everyone's pay by say $10k, and pay taxes that are the marginal rate for YTD income.
Of course this doesn't fully cover the taxes for dual income high earners, and it can create some additional taxes for employees that have other income, because now their base is $10k higher. In this case, the change will cost these employees up to a few hundred dollars.
A tax change that may cost someone a few hundred dollars, pretty quickly get's lost in the noise when you are talking about multi thousand dollar raises and bonuses.