Microsoft has begun to tax some of those who work for its products, in what the tech giant called a “tax holiday.”
The tech giant said Wednesday that it has decided to offer the employees of its popular Office 365 productivity suite a tax holiday starting in October.
“In response to your feedback, Microsoft is offering employees the opportunity to pay a tax on their wages and other income in full in accordance with the tax law,” Microsoft wrote in a memo to employees, according to The Wall Street Journal.
“This tax holiday is not a tax rebate or tax credit, but a tax payment and is not required to be disclosed to the IRS.
Employees who wish to pay their tax in full will have the option to do so by completing a payment plan or by contacting a Microsoft representative.
This tax holiday will only be available to employees who are U.S. citizens or permanent residents and who have not already paid any taxes.”
Microsoft said it will allow employees who pay their taxes in full to receive up to $1,500 per year in additional bonuses.
“As part of our effort to simplify our tax laws, we are lowering the threshold for individuals to receive a tax refund in order to ensure that no employee is left out of pocket for paying taxes,” Microsoft said in a statement.
Microsoft’s tax holiday comes as the tech company’s stock price has dropped more than 30% since the start of the year, as it grapples with sluggish Windows and Office sales.