Lawrence Jones Signs $2.5 Million Salary Contract with Fox

I have analyzed Lawrence Jones’s latest salary contract with Fox News, and a few interesting things caught my attention.

According to the deal, Jones earns an annual salary of $2.5 million. However, the contract also states that he is eligible for an additional $700,000 in bonuses.

Even though many employers don’t typically do this, Fox went a step further and financed $4 million for Jones to buy a new house as a joint owner with his wife, Amanda.

Lawrence Jones Wife

Not many people know that Lawrence Jones’s wife is Amanda. The two got married after dating for just eight months.

She is a professional makeup artist who has worked with some of the biggest stars in Hollywood.

Amanda has collaborated with celebrities like Margot Robbie, Michael B. Jordan, and Emily Blunt on films such as Oppenheimer and Creed III.

She earns an estimated $550,000 annually from her work in the industry.

Lawrence and Amanda maintain a low public profile. They recently purchased a lakefront villa in North Carolina with the help of a bank loan. The couple does not have any children.

Jones joined Fox News as a contributor in December 2019. He hosted Lawrence Jones Cross Country from 2022 to 2023 and filled in for Tucker Carlson on Fox News Tonight after Carlson’s departure. In September 2023, he was named a permanent co-host of Fox & Friends.

Prior to Fox News, Jones was the Editor-in-Chief at Campus Reform, hosted his own radio show on TheBlaze Radio Network, and served as a contributing host for TheBlaze TV.

Jones has been involved in significant on-the-ground reporting, including his “barbershop series” where he engaged with voters in different cities like Detroit, New York, and Atlanta.

Opinion of a Lawyer

Lawrence Jones’s $2.5 million annual salary is well above New York State’s minimum wage requirements and does not present any immediate violations.

The provision of $4 million for a house purchase with joint ownership is permissible under New York State labor law but carries significant tax implications for both Fox News and Mr. Jones.

Assuming a standard full-time work year of approximately 2080 hours (40 hours per week for 52 weeks), an annual salary of $2.5 million translates to an hourly rate of approximately $1201.92. This figure is hundreds of times greater than the state-mandated minimum wage.

Tax Implications

This arrangement will most likely be interpreted as a form of compensation or a taxable fringe benefit. The joint ownership with Amanda Jones introduces additional legal considerations under New York property law and potential federal gift tax implications.

While New York State does not impose a gift tax, the transfer of a joint ownership interest in a $4 million house to Amanda Jones triggers federal gift tax implications for Lawrence Jones in the year of the purchase, particularly if the value of her share exceeds the annual federal gift tax exclusion ($16,000 in 2022, $17,000 in 2023, and $18,000 in 2024).

If the value of the gift exceeds the applicable exclusion amount, Lawrence Jones is required to file a federal gift tax return (Form 709). However, no gift tax is due at the time of filing if he applies a portion of his lifetime gift and estate tax exemption to offset the excess value.

For real estate, this would involve obtaining an appraisal or researching comparable sales or rental values in the area.

Compliance

This FMV should then need to be included as part of Lawrence Jones’s taxable wages reported on Form W-2, which is used for both federal and state income tax reporting. The amounts should be reported in Boxes 1, 3, and 5 of the W-2.

Under New York Labor Law, bonuses can be considered wages depending on the specific terms and conditions under which they are offered and earned.

If the $700,000 bonus eligibility in Lawrence Jones’s contract is guaranteed or contingent upon meeting specific, measurable performance metrics outlined in the agreement, it is more likely to be classified as a non-discretionary bonus and thus considered wages under New York Labor Law.