Two companies have offered me Amazon gift cards, one of them told me that it’s far easier for tax purposes (my understanding is that this is why user research often offers them, rather than cash). I assume they could give prepaid debit cards too, for people who prefer not to shop at Amazon.

I don't know what the law is. Years ago, but I've been paid for doing a focus group in cash. So there's presumably some threshold where you can just have essentially a petty cash business expense.

Obviously meals and so forth as well. (And, assuming the law hasn't changed, US government employees have to pay for even a modest meal at a company's executive briefing center.)

OTOH, I've had 1099s for even very modest side-consulting revenue.

> So there's presumably some threshold where you can just have essentially a petty cash business expense.

$600

How surprisingly sensible. :-)

Except now the IRS will be watching bank accounts for any transaction totaling over $600 to combat this loophole. Good luck!

They don't need to watch bank accounts. Companies are supposed to issue 1099s for payments over $600.

Documented anywhere?

>Assuming this is legal at all according to current employment contracts, it's a huge pain for the new employer's payroll and more stuff to keep track for the employee's income tax.

Is it actually? I run a small business, and have trialled people a few times. I normally just transfer them the $x and report it as a business expense, same as you'd do with a contractor.

Maybe it's not technically 100% compliant, but I'd be incredibly surprised if the tax office kicked up a stink about something so petty.

(Then again, maybe it's just a "she'll be right mate" attitude that permeates even government departments here in Australia)

In the US, you probably need to issue a tax form; this can be handled through a third party but then is a bit of a pain for the candidate. (I've had it work this way as a consultant on the side.)

Depending on the potential employee's contracts and business rules, doing a side project for someone may or may not be 100% kosher.

Disclaimer: I'm not a tax consultant, check with your accountant

If they don't have an ABN, they'll need to give you "Statement by a Supplier" [1], otherwise you're required to withhold tax at the top marginal rate.

[1] https://www.ato.gov.au/forms/statement-by-a-supplier-not-quo...

In the US, you might end up having to send a whole bunch of 1099s, which I am sure would be a pain.

under $600 you don't need a 1099

I once applied somewhere that had a 20 minute pre interview test thing. They rejected me after the test but gave me $50 free credit for their service (sticker printing). I was reasonably pleased with the stack of stickers I received.

> it's a huge pain for the new employer's payroll

They're the ones giving take-home assignments.

I've had companies get around this with gift cards. I did a application-project and got a $300 amazon card (I think). This can come out of someone's general budget and doesn't need accounting to be involved, and can also (plausibly) treated as a "thank you" by the applicant, not income.

I've interviewed twice at a place that pays for time spent in the technical assessment, since it involves writing actual production code for them, and never had any issues on my end. I'd rather do this than grind leet code for 2 months.

Why is it a pain? Not a payroll consideration, as they are not an employee (yet). Isn't it just a simple $600 max Form 1099 independent contractor situation? Small administrative burden to find the right senior.