Tax Compensation Strategies for Mortgage Lenders Ep. 2: Prepaid Bonuses & Loans

Are Your Compensation Incentives Creating Tax Risk? Sign-on bonuses, retention bonuses, forgivable loans, and clawback arrangements can help mortgage lenders remain competitive in the race for talent. But without careful planning, these programs can create unintended tax, payroll, accounting, and compliance challenges. In Episode 2 of our Tax Compensation Strategies for Mortgage Lenders video series, Kenny Burch and Gina Jackson discuss how lenders can evaluate these strategies, avoid common pitfalls, and better align compensation programs with business performance and profitability goals. Chapters: 0:00 - Introductions 0:54 - Why lenders are leaning on sign-on and retention bonuses 2:33 - Pros and cons of bonus plans 4:55 - How lenders should treat sign-on and retention bonuses 5:51 - What businesses need to know about income taxes 6:58 - Risks of forgivable loans or advances 8:20 - What if a lender offers to cover a prior employer's clawback 9:19 - What lenders should do before rolling out or renewing these programs 10:08 - Closing remarks