Report: Google Playing Santa for Its Workers

Google is spreading Christmas cheer.

Citing a "loyal reader," the website Business Insider.com reports Google has handed out $1,000 holiday bonuses to all its employees and 2011 salary increases of at least 10 percent.

Not only that, Business Insider says Google is paying the taxes on the bonuses, so recipients will get to keep the whole amount.

The website adds, "Google will also give each employee an additional raise equivalent to 1X the employee's target bonus for the year. And employees will be eligible for additional "merit increases" based on their individual performance."

Business Insider estimates the bonuses will cost Google $20 million and the raises, $20 billion.

It adds that Google hasn't responded to its requests to confirm the report, but quotes from what it says is an internal e-mail from Google Chairman and CEO Eric Schmidt about the bonuses and pay hikes.